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Consultants warn of megaproject risks as legislators press for LNG cost transparency and independent oversight
Summary
Pegasus Global and Gaffney Klein told the Senate Resources Committee that large infrastructure projects commonly face schedule slips and cost overruns and recommended open‑book models and independent monitoring; senators pressed about confidential cost data, who bears overruns and Gaffney Klein's relationship to Baker Hughes.
Consultants who have reviewed large energy infrastructure projects told the Alaska Senate Resources Committee on Jan. 23 that the state should press for greater transparency, independent verification and oversight as the Alaska LNG project approaches a final investment decision.
Jeremy Clark of Pegasus Global Holdings, citing lessons from Trans‑Alaska Pipeline System (TAPS) and other megaprojects, warned that extended development timelines make projects vulnerable to "black swan" events and ripple effects that produce schedule slips and cost escalation. Clark noted industry standard front‑end loading (FEL) phases: early estimates can be ±50% while a Class 3 estimate used to support an FID typically targets ±10–15% accuracy.
"It's very common for megaprojects to go over budget and be off schedule," Clark said, pointing to historical examples including TAPS (initial estimate about $4 billion, completion about $8 billion) and a U.S. nuclear project whose costs rose…
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