Fairbanks, Alaska – Continuing his commitment to lower Alaskans’ energy costs, Governor Sean Parnell Wednesday signed into law Senate Bill 23, legislation to put in place a $362.5 million financing package for natural gas liquefaction on the North Slope and a distribution system.

The Alaska Industrial Development and Export Authority (AIDEA) now has the authority to offer up to $275 million in low interest financing for a natural gas liquefaction plant and a liquefied natural gas (LNG) distribution system within the Fairbanks North Star Borough. Additionally, $57.5 million in capital funding has been appropriated and $30 million in storage credits are available to advance the project to provide energy relief to the Interior.

“The Interior Energy Plan now becomes the Interior Energy Project,” Governor Parnell said. “Alaska is investing in Alaska for the benefit of Alaskans. We will make sure this project is completed with a full-court press for Fairbanks and the Interior.

“By putting in place a financing package for natural gas liquefaction and distribution, communities throughout Alaska will benefit. Not only will an Interior gas distribution system help bring down energy costs in the short term, but it builds the necessary infrastructure for these communities to be able to take advantage of an Alaska gasline in the future.”

Senate Bill 23 is the main component of Governor Parnell’s Interior Energy Plan to provide affordable gas to Interior and rural Alaskans. This comprehensive strategy includes low interest loans, gas storage tax credits, and general fund dollars for a moveable liquefaction plant and distribution system.

“I want to thank the Legislature for passing this bill swiftly and for the overwhelming bipartisan support they offered.”