Alaska’s governor Bill Walker on Thursday revealed an important step has been taken in the development of the Alaska LNG project.
Walker said in a statement that oil and gas giants ConocoPhillips and BP agreed to sign and make public the gas availability agreement for their share of North Slope natural gas.
“The agreement will allow the project to move forward in the event that either company ends participation in the AKLNG project during preliminary front-end engineering and design (pre-FEED),” the statement reads.
The state of Alaska has signed on to the Alaska LNG project for another year with the approval of project’s work plan and budget.
During the year, the pre-FEED work, which includes a natural gas liquefaction plant, storage facilities and an export terminal at Nikiski, an 800-mile gas pipeline from the North Slope to southcentral Alaska, a gas treatment plant and transmission lines connecting the project to gas-producing fields, should be completed.
Governor Walker noted that with a $3.5 billion budget deficit, the project is a must-have for the state.
Alaska LNG is expected to export up to 20 million tons of liquefied natural gas per year.
LNG World News Staff