The AK-LNG project is facing steep headwinds this month on several fronts: Tariffs on steel are going up, a stern letter from the Federal Energy Regulatory Commission is deeply troubling, none of the promised purchase agreements have been announced, and the agency has a rapidly dwindling bank account.
Now, the AGDC is hoping for a cash infusion from a foreign entity, possibly China, to stay afloat. This adds even further to the uncertainty.
Setting aside the dubious likelihood of a foreign entity investing substantial sums in the project, it is far from clear whether the Legislature would even allow the Alaska Gasline Development Corporation to accept foreign funding. Doing so would cut legislators off from their appropriating authority on the proposed $45 billion gasline and potentially hand authority to a foreign entity. That would be a tough sell.