Frank Richards
52:43 - 53:44
“we wanted this opportunity to acquire ownership if the State of Alaska through appropriate legislation would be available to us. And so we reserved that option. However, if that option does not proceed forward, there will still be some what we call developer economics returns. And as owner of HSTAR Alaska, because of the development cost that the State of Alaska through AGDC and now Glenn Farm working towards FID will have expended and want to have some return on the investment. So as Glenn Farm retains equity positions in any of the sub projects and has developer economics return coming up to them for fees to those sub projects, then AGDC without any more additional funding would receive 25% of those returns to the State of Alaska.”
- Speaker
- Frank Richards
- Timestamp
- 52:43 – 53:44
- Community
- Alaska News
- Location
- Alaska
- Captured at
From the transcript
One of the key issues that we negotiated was that we wanted this opportunity to acquire ownership if the State of Alaska through appropriate legislation would be available to us. And so we reserved that option. However, if that option does not proceed forward, there will still be some what we call developer economics returns. And as owner of HSTAR Alaska, because of the development cost that the State of Alaska through AGDC and now Glenn Farm working towards FID will have expended and want to have some return on the investment. So as Glenn Farm retains equity positions in any of the sub projects and has developer economics return coming up to them for fees to those sub projects, then AGDC without any more additional funding would receive 25% of those returns to the State of Alaska.
Related Coverage
Glenfarne's own cost estimate for Alaska LNG is now significantly higher than AGDC's — and the state's equity option sits in the middle of the new math
Glenfarne raised Alaska LNG cost estimate to 44.5 to 54.5 billion dollars, up from state agency's 38.7 billion. • Legislature can buy 5 to 25 percent equity stake within 180 days after final investment decision. • Property tax reform is central to project financing, with current rates costing roughly 380 million dollars yearly during construction.
