42 Alaska Business | May 2018 www.akbizmag.com
Kathryn Mackenzie is Managing Editor for
construction and approximately 1,000 jobs
during operation. Numerous opportunities
for Alaska businesses and contractors will
also be created,” according to AGDC.
Another significant step for Alaska LNG
was announced in late March. “The Alaska
Gasline Development Corporation engaged
Bank of China and Goldman Sachs to serve
as global capital coordinators to AGDC’s
Alaska LNG project,” the corporation an-
nounced. Bank of China and Goldman Sachs
will help AGDC raise equity and debt financ-
ing for the continued development of the
project. The March AGDC release said: “The
investment banks and AGDC anticipate rais-
ing the funds in multiple rounds, which will
include offerings to Alaska residents, Alaska
municipalities, Alaska Native Corporations,
and private equity sources. Initial equity will
be raised to meet AGDC’s working capital re-
quirements and subsequent funding rounds
will be used to fund full-scale development
of Alaska LNG, once the project has received
all necessary approvals.”
The New Edition
This relationship with China, G2G strategies,
and other information are explored in depth
in the 2018 edition of Cracking the Code. As
Debt for Capacity: 75 percent of the LNG
production will go to a single buyer in China.
FEED: Front End Engineering and Design
Fungible: Our gas is payment for the loan
to build the infrastructure and for related
Supply Gap: In 2024, China calculates its LNG
supplies will be less than the desired level to
enable transition from coal to natural gas as its
major energy source. This project fits their target.
Aggregation: Under this system, a single buyer
can arrange contracts for multiple quantity
contracts. Alaska has initiated this idea for
communities along the pipeline route. China
will use the same idea for twenty to thirty year
Roberts says, “2018 is a critical time for Alas-
kans to once again understand the discussion.
The tremendous work by AGDC and the Walk-
er Administration is pushing our resource to
market. Delivery of LNG to Asia and natural
gas to our communities and in-state resource
developments will substantially strengthen
our economy for future generations.”
Roberts persists in her enthusiasm about
seeing this natural resource put to good use.
“Alaska will be the exciting place it was for
those of us who watched it grow through
early statehood and the beginning of the oil
boom of the 1970s,” says Roberts. “The gov-
ernment will be able to fund schools, roads,
and public services. Younger generations will
be able to train for these jobs and participate
in building the state.”
Cracking the Code 2018 will be available for
purchase July 1. R
“Economic impact studies indicate the project will benefit Alaskans through royalties and jobs
and provide low-cost, clean energy to help stimulate economic activity throughout the state. The
project will create up to 12,000 jobs during construction and approximately 1,000 jobs during
operation. Numerous opportunities for Alaska businesses and contractors will also be created.”
—Alaska Gasline Development Corporation
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