Grist: "Alaska’s $44 billion bet on natural gas." Since his first day in office, Trump has focused on “unleashing Alaska’s extraordinary resource potential.” Proponents like Alaska Governor Mike Dunleavy extoll the economic benefits the pipeline will bring to Alaska and the energy security it will provide to allies.
"But the cost is staggering: Official estimates put it at $44 billion, though independent analysts suggest it could top $70 billion." North Slope of Alaska holds about 35 trillion cubic feet of natural gas, making it one of the largest known sources in the US. "But with the project’s steep price tag and no firm commitments from buyers, oil majors like ConocoPhillips and Exxon Mobil have backed away over the last decade."
Glenfarne Group, a privately held energy firm that has never operated a liquified natural gas export terminal, stepped in last year. Incredibly, "shortly after Trump was elected, state officials handed the company a 75 percent stake in the project in a NO-BID DEAL, the details of which have been kept even from the legislature." Glenfarne will lead the project’s development + financing efforts and, if the company decides to move forward, oversee construction + operation of the pipeline, gas treatment plant, + export terminal.
"Though the state has not paid Glenfarne directly, it has poured at least $600 million into planning, design, and permitting—and initially floated paying Glenfarne an additional $50 million for its costs, even if the company decided to walk away." The pipeline’s backers are already eyeing additional federal support, including $30 billion in loan guarantees.
“Every taxpayer should be furious that the federal government is chasing this project,” said Cooper Freeman, the state director for The Center for Biological Diversity, which is suing the federal government over the proposed pipeline’s threat to endangered species.
I didn't even have to look up how to spell boondoggle. Which is not a breed of dog. Or is it?
As always, hats off to our fossil fuel buddies.
