The Alaska Gasline Development Corporation (AGDC) signed a letter of intent with Japan’s Tokyo Gas for the sale and purchase of the chilled fuel from Alaska LNG project.
The companies have also agreed to explore other opportunities to materialize the Alaska liquefied natural gas export project that will provide a direct link between the proven, conventional, natural gas resource on Alaska’s North Slope with the growing LNG markets in Asia, AGDC said in a statement on Tuesday.
Michiaki Hirose, president, Tokyo Gas said, “for more than forty-years Tokyo Gas received shipments of LNG from Alaska. As the closest source of North American LNG to Japan, with a shipping time of as little as seven days point to point, Alaska LNG is naturally an economic and reliable source of LNG for Tokyo Gas.”
AGDC’s president Keith Meyer added that the agreement with Tokyo Gas “helps round out the sales volumes from the Alaska LNG project.”
Alaska LNG is designed as a 20 million tons per annum (MTPA) integrated LNG system comprised of a three-train liquefaction plant in Southcentral Alaska at Nikiski, an approximately 800 mile, 1.1 meter diameter gas pipeline, a gas treatment plant on the North Slope of Alaska and various interconnecting facilities to connect the Prudhoe Bay gas complex to the gas treatment plant, with a $40 billion price tag.
According to AGDC, the project is expected to start-up in 2023.