Sponsor Statement for HB 393

The intent of this legislation is to encourage the development of our natural gas resources on the North Slope by assisting with the formation of a development sponsor group. This sponsor group will make an application to enter into a contract with the state, which will enable this project to move forward. The idea is to construct a natural gas pipeline from Prudhoe Bay to Valdez where the gas will be converted to liquid form (LNG) and shipped to Asian gas markets.

The next step is the actual formation of a sponsor group, which will proceed with preliminary engineering and detailed cost estimation. Based upon the economic analysis of the cost estimate the sponsor group will come forward and negotiate a contract with the state.

This project will not only provide revenues to the state through royalties and property taxes; it will also provide thousands of good jobs for Alaskans.