(SitNews) - The Alaska Senate Finance Committee heard testimony today from a trio of financial firms on the implications to the state of a potential decision to buy out TransCanada’s interest in the Alaska LNG Project.

The presentation addressed the financial impact of a decision to buyout TransCanada’s interest on the state’s financial position, credit rating, and borrowing capacity.

“Our duty as members of the finance committee is to consider options for project financing, the various costs we must consider when evaluating this proposal, and the benefits and potential negative impacts the state could face as a result of the decisions we make,” said Senate Finance Committee Co-chair Anna MacKinnon (R-Eagle River).

According to a news release from the Alaska Senate Majority, a key takeaway was the importance of evaluating the cost of capital for the state, as policymakers weigh the decision to buy out TransCanada’s interest.

The uncertainty of financial markets makes any decision that much more difficult, as the cost of project financing could change based on national markets, underscoring the importance of a sustainable budget to the state’s credit rating and its ability to finance the project at a low cost stated the news release.

According to analysis by FirstSouthwest, however, a decision to terminate TransCanada’s participation would not, in itself, hurt the state’s credit rating and could be viewed positively if the state were to obtain a lower interest loan in the marketplace.

“Today’s presentation was an example of just one complexity of this megaproject,” said Senator Lyman Hoffman (D-Bethel). “There are many things to consider, and this is why we must continue our due diligence when evaluating every proposal and decision. We need to keep an eye on the ball and ensure that all Alaskans will benefit from the development of the gasline.”

Edited by Mary Kauffman, SitNews

On the Web:

Listen to Sen. Hoffman's comments on Financial Impact of TransCanada Buyout
Click here for YouTube video

Source of News:

Alaska Senate Majority Republicans
www.akleg.gov

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