Glenfarne Alaska LNG LLC and ConocoPhillips (NYSE:COP) Alaska have entered into a 30-year gas sales precedent agreement covering natural gas supply from Alaska’s North Slope for the first phase of the Alaska LNG development.
Agreement supports Phase One investment plans
According to the companies, the agreement secures enough gas volumes to support a final investment decision for Phase One of the project while also providing sufficient supply to help meet Alaska’s long-term energy demand.
Glenfarne is advancing the Alaska LNG project through a two-phase development strategy.
The first phase includes construction of a 739-mile, 42-inch natural gas pipeline designed to transport gas from the North Slope to consumers across Alaska.
The second phase will involve the addition of LNG export infrastructure located in Nikiski.
Major North Slope producers now aligned with project
With the latest agreement, Alaska LNG now has supply arrangements in place with all three major producers operating on Alaska’s North Slope: ConocoPhillips, Exxon Mobil (NYSE:XOM), and Hilcorp Alaska.
The project has also secured participation from Great Bear Pantheon LLC, a subsidiary of Pantheon Resources (LSE:PANR).
“All major North Slope producers have now committed enough natural gas to support a Phase One final investment decision,” said Adam Prestidge, president of Glenfarne Alaska LNG.
ConocoPhillips Alaska president Erec Isaacson said the company’s involvement in Alaska LNG supports dependable long-term access to North Slope gas resources while complementing the company’s broader investment activity in Alaska.
Full project includes export capacity expansion
The complete Alaska LNG development is expected to include an 807-mile pipeline system capable of transporting North Slope natural gas for both domestic consumption and LNG exports.
The project is designed to produce approximately 20 million tonnes per year of LNG for international markets.
Glenfarne currently owns a 75% interest in Alaska LNG, while the remaining 25% stake is held by the State of Alaska through the Alaska Gasline Development Corporation.