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Awarded contract·Alaska Energy Authority·Alaska

Interior Energy Project (IEP)

$250MSingle Award
Contract source

Description

The Interior Energy Project (IEP) RFP seeks a private partner (or consortium) to design, finance, permit, construct, and operate a liquefied natural gas (LNG) facility in Cook Inlet, Alaska, with an initial capacity of 200,000 gal/day and expansion potential to 400,000 gal/day. The selected partner must provide a fully integrated solution—including supply‑chain planning, commercial sales‑purchase agreements, financing structures (leveraging up to $275 million of AIDEA‑backed financing), and detailed engineering, procurement, construction, and operational plans. The solicitation emphasizes low‑cost energy delivery to Interior Alaska, rapid project execution (performance start slated for January 2016), and compliance with Alaska licensing and certification requirements. The procurement process involves a two‑step evaluation, with up to four proposals advancing to a final‑offer stage, followed by Board approval. No vendor has yet been awarded the contract. • Scope: Full‑system LNG plant (design, build, finance, operate) – optional propane or pipeline alternatives also acceptable. • Funding: Up to $275 M in state‑backed loans, bonds, and equity (no fixed contract price). • Timeline: Proposal deadline 3 Aug 2015; work to commence Jan 2016. • Requirements: Alaska business license, corporate certifications, insurance, and cost‑data certifications.

Attached files

Key dates

Bids closed
8/3/2015
Contract modified
8/11/2015
Starts
1/1/2016

Last updated

Details

Award type
Single Award
Procurement
Full and Open Competition
Industry
Energy and Utilities
NAICS
541330
Solicitation №
RFP 15‑142

Contract value

$250,000,000

The RFP does not state a fixed contract value, but it identifies a pool of up to $275 million in state‑backed financing (including $125 m capitalization, $150 m bonding authority, and $45 m equity). Since the private partner is expected to arrange additional private equity/debt and will receive a portion of this financing, the total project capital is likely in the $300‑$500 million range. Assuming the agency’s contribution represents roughly 50‑60 % of total project cost, a reasonable estimate of the contract’s financial magnitude (i.e., the value of the award to the selected partner) would be about $250 million. This figure reflects the scale of a 200,000 gal/day LNG plant, the financing mechanisms disclosed, and typical industry cost benchmarks for comparable LNG facilities in remote locations.

AI estimate from the award documents

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