
Nicholas Fulford
43:42 - 44:30
"with the current arrangement, it's not surprising, frankly, that there is some degree of concern over confidentiality, capital costs, and so forth."
“with the current arrangement, it's not surprising, frankly, that there is some degree of concern over confidentiality, capital costs, and so forth.”
The economics of the project in a negotiating environment are very, very tightly held because clearly in that commercial back and forth, whether it's around equity or upstream supply, the understanding of the broad economic basis of the project is a key feature. So unlike the— in SB 138, where there was a considerable degree of transparency between ExxonMobil as the developer then, you know, the state and other entities, with the current arrangement, it's not surprising, frankly, that there is some degree of concern over confidentiality, capital costs, and so forth.
The Alaska State Senate Finance Committee heard Wednesday that the Alaska LNG project's capital costs could reach $70 billion rather than the commonly cited $46 billion, and that the state's 25% equity stake faces potential dilution when new investors join the project's three sub-companies.
