The Alaska Gasline Development Corp. says they have signed a letter of intent with Tokyo Gas Co., regarding the sale and purchase of liquid natural gas from the AGDC, whose goal is to develop the actual integrated gas pipeline.
The announcement on Dec. 4 comes on the heels of a five-party joint development agreement signed in early November by Gov. Bill Walker, AGDC and three of China’s largest energy and finance companies related to the proposed Alaska liquefied natural gas project. They include Sinopec, Bank of China and China Investment Corp.
The agreement gives all parties until December 2018 to reach a definitive agreement on how they will work together, said Rosetta Alcantra, vice president of communications for AGDC.
A total of nine such agreements have been signed by AGDC and potential partners in Vietnam, China, Korea and Japan, Alcantra said.
The long-term goal is to construct an integrated gas pipeline and LNG infrastructure that will provide a reliable link between the natural gas resources on Alaska’s North Slope with growing PNG markets in Asia. Interstate Oil and Gas Compact Commission member states on Nov. 22 approved a resolution recognizing Alaska’s proven supplies of natural gas, which are projected to increase positive trade flow to Asia by $8 billion to $120 billion annually, as well as create thousands of jobs for Americans, AGDC said.
Walker said at the time that the agreement has all five necessary signatories – the buyer, the lender, the investor, the developer and the state.
“This is a big project with big players and big benefits,” he said. “There are more steps before a final investment decision is reached, but having the largest LNG buyer in the world participating in this project means the Alaska PNG project has favorable market engagement at the highest level.”
Learn more about the entire project, its agreements and challenges, plus potential investors, and how it would work at https://agdc.us/wp-content/uploads/2016/08/AGDC-China-Joint-Development-Agreement-Insert.pdf
