Alaska North Slope Royalty Study
On November 18, 2013, the Department of Natural Resources issued the Alaska North Slope Royalty Study.
This study was commissioned in June 2013 to assist the State of Alaska in characterizing and developing fiscal and policy measures to advance the Alaska LNG Project, which seeks to liquefy Alaska North Slope gas and export it, primarily to Asian markets. Under this project, new gas supplies would also be available to Alaskans.
The key sponsors of the LNG project are Exxon Mobil, Conoco Phillips, and BP, with potential participation by TransCanada and the State of Alaska.
If built, the Alaska LNG Project would be one of the world's largest LNG projects.
This study, conducted by Black & Veatch, addresses four major commercial issues for the State of Alaska to consider: LNG markets; supply chain elements; fiscal framework; and risk allocation/commercial structure.
The purpose of the study is to provide information to help the State protect its royalty interest in the State's gas, and to ensure that the State maximizes the value of its natural gas.