Upload
jace-hall
View
217
Download
0
Embed Size (px)
Citation preview
00009alska/1
ALASKA GASLINE PORT AUTHORITYALASKA GASLINE PORT AUTHORITY
00009alska/2
Alaska Gasline Port AuthorityAlaska Gasline Port Authority
The Alaska Gasline Port Authority consists of three municipalities
– North Slope Borough
– Fairbanks North Star Borough
– City of Valdez
The Alaska Gasline Port Authority consists of three municipalities
– North Slope Borough
– Fairbanks North Star Borough
– City of Valdez
00009alska/3
Alaska Gasline Port AuthorityAlaska Gasline Port Authority
Board of DirectorsBoard of Directors
North Slope BoroughMayor George Ahmaogak, ChairAl AdamsRichard Glenn
North Slope BoroughMayor George Ahmaogak, ChairAl AdamsRichard Glenn
City of ValdezMayor Bert CottleDave Cobb, SecretaryJohn Kelsey
City of ValdezMayor Bert CottleDave Cobb, SecretaryJohn Kelsey
Fairbanks North Star BoroughMayor Rhonda Boyles, TreasurerCharlie Cole, Vice ChairBarbara Schuhmann
Fairbanks North Star BoroughMayor Rhonda Boyles, TreasurerCharlie Cole, Vice ChairBarbara Schuhmann
00009alska/4
Alaska Gasline Port Authority’s MissionAlaska Gasline Port Authority’s Mission
The mission of the Alaska Gasline Port Authority is to enable the development of Alaska’s North Slope gas to the maximum benefit of all Alaskans.
The mission of the Alaska Gasline Port Authority is to enable the development of Alaska’s North Slope gas to the maximum benefit of all Alaskans.
00009alska/5
Evolution of the Alaska Gasline Port AuthorityEvolution of the Alaska Gasline Port Authority
Preparation of the project development plan; engineering, procurement and construction plan; project cost estimate and alternatives analyses
Preparation of economic and financial models
IRS granting of federal income tax exemption
Preparation of the project development plan; engineering, procurement and construction plan; project cost estimate and alternatives analyses
Preparation of economic and financial models
IRS granting of federal income tax exemption
00009alska/6
The Project TeamThe Project Team
Alaska Gasline Port Authority Bechtel Corporation – technical and
development support Taylor DeJongh – financial analysis and
formation O’Melveny and Myers – development counsel Walker Walker and Associates – general
counsel
Alaska Gasline Port Authority Bechtel Corporation – technical and
development support Taylor DeJongh – financial analysis and
formation O’Melveny and Myers – development counsel Walker Walker and Associates – general
counsel
00009alska/7
Advantages of a Y-LineAdvantages of a Y-Line
Combining a gasline to the lower 48 with a gasline to an LNG and/or GTL project will lower the cost of gas transportation down each branch of the line by approximately 33 percent
Combining a gasline to the lower 48 with a gasline to an LNG and/or GTL project will lower the cost of gas transportation down each branch of the line by approximately 33 percent
00009alska/8
Construction CostConstruction Cost
A single line to carry 3 bcf per day = $7.0 billion
A Y-line to carry 3 bcf to the Canadian border and 3 bcf to an LNG/GTL facility = $9.7 billion
A single line to carry 3 bcf per day = $7.0 billion
A Y-line to carry 3 bcf to the Canadian border and 3 bcf to an LNG/GTL facility = $9.7 billion
9.72
9.72
= $4.85 billion= $4.85 billion
00009alska/9
Project Scope – Y-LineProject Scope – Y-Line
Gas conditioning plant on the North Slope 550-mile, 56-inch diameter pipeline from North
Slope to Delta Junction 150-mile, 44-inch diameter pipeline to Canadian
border for interconnect to lower 48 256-mile, 46-inch diameter branch line to Valdez Spur line to Anchorage from Glennallen 15 million ton per year LNG plant, LPG
fractionation plant and port facilities in Valdez
Gas conditioning plant on the North Slope 550-mile, 56-inch diameter pipeline from North
Slope to Delta Junction 150-mile, 44-inch diameter pipeline to Canadian
border for interconnect to lower 48 256-mile, 46-inch diameter branch line to Valdez Spur line to Anchorage from Glennallen 15 million ton per year LNG plant, LPG
fractionation plant and port facilities in Valdez
00009alska/10
Cost of Y-Line for Two ProjectsCost of Y-Line for Two Projects
Construction cost
– Conditioning plant (assuming noefficiencies from existing plant) $ 4.2 billion
– Pipeline (including thetwo branches) $ 9.7 billion
– LPG fractionation plant $ 450 million
– LNG plant and port facilities $ 3.65 billion
– Construction cost total $ 18.0 billion
Construction cost
– Conditioning plant (assuming noefficiencies from existing plant) $ 4.2 billion
– Pipeline (including thetwo branches) $ 9.7 billion
– LPG fractionation plant $ 450 million
– LNG plant and port facilities $ 3.65 billion
– Construction cost total $ 18.0 billion
(includes escalation and $1.8 billion contingency)(includes escalation and $1.8 billion contingency)
00009alska/11
Cost of Y-Line for Two Projects (Cont’d)Cost of Y-Line for Two Projects (Cont’d)
Soft costs– Interest during construction $ 4.9 billion
– Owner’s contingency $ 900 million
– Debt service reserve $ 1.0 billion
– Financing fees, working capital, etc. $ 1.0 billion
$ 7.8 billion
– Minus pre-completion revenue -3.2 billion
– Total financing required $ 22.6 billion
Soft costs– Interest during construction $ 4.9 billion
– Owner’s contingency $ 900 million
– Debt service reserve $ 1.0 billion
– Financing fees, working capital, etc. $ 1.0 billion
$ 7.8 billion
– Minus pre-completion revenue -3.2 billion
– Total financing required $ 22.6 billion
(for both LNG project and pipeline to Alaskan-Canadian border for Lower 48 sales)
(for both LNG project and pipeline to Alaskan-Canadian border for Lower 48 sales)
00009alska/12
Financial Results of the Y-LineFinancial Results of the Y-Line
Producers: $2 billion to $3 billion per year State – royalties, severance tax, and corporate
income tax: $750 million to $980 million per year Payment in lieu of property taxes: $114 million
per year All Alaskan Community Dividend: $111 million
per year Assistance to Alaskan communities to lower
energy costs: $37 million per year
Producers: $2 billion to $3 billion per year State – royalties, severance tax, and corporate
income tax: $750 million to $980 million per year Payment in lieu of property taxes: $114 million
per year All Alaskan Community Dividend: $111 million
per year Assistance to Alaskan communities to lower
energy costs: $37 million per year
00009alska/13
Benefits of Port Authority OwnershipBenefits of Port Authority Ownership
Guarantees maximum in state usage of North Slope gas
Income is tax exempt (IRS ruling) Port Authority can access 100 percent
project financing for the entire project Port Authority’s required return on
investment is substantially lower than a privately-owned project
Guarantees maximum in state usage of North Slope gas
Income is tax exempt (IRS ruling) Port Authority can access 100 percent
project financing for the entire project Port Authority’s required return on
investment is substantially lower than a privately-owned project
00009alska/14
Benefits of Port Authority Ownership (Cont’d)Benefits of Port Authority Ownership (Cont’d)
Some debt would be financed with tax-exempt bonds
Port Authority is not subject to FERC regulation Annual flow of revenue to state and local
communities Port Authority creates local ownership of
gasline
Some debt would be financed with tax-exempt bonds
Port Authority is not subject to FERC regulation Annual flow of revenue to state and local
communities Port Authority creates local ownership of
gasline
00009alska/15
Benefits of Port Authority Ownership (Cont’d)Benefits of Port Authority Ownership (Cont’d)
No need to give up state revenue (tax or royalties) to subsidize the project
More certainty of gas available for in-state usage and more control over price
No need to give up state revenue (tax or royalties) to subsidize the project
More certainty of gas available for in-state usage and more control over price
Example:$3.00 Chicago price per million Btu-1.20 Transportation cost Alaska-Canadian
border to Chicago$1.80 Total wholesale price to Anchorage or
Fairbanks communities
Example:$3.00 Chicago price per million Btu-1.20 Transportation cost Alaska-Canadian
border to Chicago$1.80 Total wholesale price to Anchorage or
Fairbanks communities
00009alska/16
ALASKA GASLINE PORT AUTHORITYALASKA GASLINE PORT AUTHORITY