Sunday, January 29, 2012

AGIA Spending Report

The Alaska Department of Revenue and Department of Natural Resources submitted a report on expenditures on the Alaska Gasline Inducement Act (AGIA) (LINK).  The report includes details of spending to date and forecast of future spending.

Here's the simplified version:

What's absent from the report (1) The report indicates that no money has been spent to date on the LNG option, but tosses in $35,696,000 for LNG and other contingencies, and (2) There no real substance in terms of results. (3) There's no breakdown of spending East of Delta Junction, i.e. if the LNG option goes through how much AGIA spending was wasted?

The report does break out percentages spent in Alaska and Canada.  I estimate the Delta Junction to Canadian border spending equals about 8% so that 40% of AGIA spending can be tacked on to the cost of any LNG option.

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