Representatives of the companies pursuing a major liquefied natural gas project with the state said Wednesday that the project remains on track for a decision next year on whether to proceed to the next phase. But Bill McMahon with Exxon Mobil said that given the project’s magnitude, it will be essential to take the time needed to satisfactorily come to terms on issues.
Some members of the Senate’s Republican-led majority have said they are setting aside time in October for a special session on gas-line issues. Other lawmakers have said they would prefer the parties take the time needed to produce solid agreements that can be brought back to the legislature for consideration rather than have the parties bound to a rigid schedule.
McMahon told the Senate Resources Committee it’s possible that agreements could be ready for consideration at the end of this year. But he said the parties want to temper the desire to meet deadlines with the recognition that a quality product is needed to make decisions.
Sen. Bill Wielechowski, D-Anchorage, asked if the state should expect the companies to ask for cuts in oil and gas taxes. The state overhauled its oil tax system in 2013, a move supported by the industry. Van Tuyl said the changes made in 2013 “are doing the things that they need to do. We’re seeing increased activity and increased production.”
The project is being pursued by the state, BP, ConocoPhillips, Exxon Mobil, TransCanada Corp. and the Alaska Gasline Development Corp. The companies involved have said the project, as proposed, would be the largest of its kind ever designed and built.
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