Submitted by Staff Reporter on 01/12/2017 – 17:35.

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It was up to the Alaska Industrial Development and Export Authority, or AIDEA, last (WED) night to approve the non-binding Memorandum of Understanding which passed by the Interior Gas Utility board early Tuesday evening.

AIDEA has been in active negotiations with I-G-U over the course of 2016.

The AIDEA board approved the M-O-U, finally solidifying the acquisition of Pentex Alaska, which seeks to bring available gas to over seventeen thousand residences.

Mike Meeks, chairman of the IGU board, commented by saying that this is just a first step towards building long term sustainable infrastructure: “It was a major milestone, but we still have quite of bit of work to do. The next biggest step we have is a long term gas contract. Then AIDEA can certify HB-105 — that’s house bill 105. Once house bill 105 is certified, that releases a lot more funds so we can start doing things like building an LNG plant, build storage, continue to work on transportation, do conversions… all those processes start kicking into effect.”

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