Jan 16 Alaska has signed an agreement with major
oil and gas firms to bring stranded gas reserves to market by
building a pipeline to connect with a proposed liquefied natural
gas (LNG) terminal.
The deal was signed with TransCanada Corp and the
three major producers of Alaskan North Slope oil - Exxon Mobil
Corp, BP PLC, ConocoPhillips, Alaska
Governor Sean Parnell said in a statement Wednesday.
The producers have been re-injecting about 8 billion cubic
feet per day of gas back into fields as the original plan to
send it to other U.S. states was derailed by the shale gas boom
"This commercial agreement...is Alaska's roadmap to
developing our vast gas reserves," Parnell said.
"This is truly a historic achievement...We're moving forward
with a project that's on Alaska's terms and in Alaskans'
interests," Parnell said.
The project aims to supply Asian markets as well as the
Alaskan domestic market.
The Heads of Agreement, signed by the commissioners of
Natural Resources and Revenue and Alaska Gasline Development
Corp (AGDC) includes the state as an equity partner.
The deal provides gas to Alaskans, lays out proposed fiscal
terms, and will allow third-party access to all of the project
components, including possible construction of a new LNG train
at the liquefaction plant, the governor said.
The Alaska LNG project would be one of the largest export
projects of its kind in the world. The project could cost an
estimated $45 billion to $65 billion and could include the
construction of an 800-mile pipeline to a proposed LNG terminal
in the Nikiski area on the Kenai Peninsula or another site.
Parnell said the agreement ensures Alaskans' interests are
protected by outlining significant participation by AGDC and
recognizes that AGDC will continue to pursue its own Alaska
Stand Alone Pipeline instate gasline project.
The agreement will be subject to public review by the
Legislature this session, the governor said.