PHOENIX – The Alaska government has signed and made public agreements with two major gas companies that will allow a major pipeline project to move forward even if the private firms decide to drop out.
Alaska Gov. Bill Walker announced the agreement between the state, BP, and ConocoPhillips last week and made the document public Tuesday. The agreement ensures that the Alaska Liquid Natural Gas pipeline project (AKLNG) will have access to the companies' share of gas on Alaska's North Slope. The project is part of Walker's push to monetize the untapped natural resources of his state, which is facing a multi-billion dollar budget deficit due to low oil prices.
"This is an historic milestone in the AKLNG project," Walker said. "I am pleased that this agreement will be made public so Alaskans can better understand the project. Ensuring gas will be available to this gasline is a significant step in the right direction.
"With a $3.5 billion budget deficit, this gasline is a must-have project for the state," Walker continued. "We are committed to working with the legislature and our partners to see this project to completion and finally produce Alaska's abundant supply of North Slope gas."
During the next year, the project partners will work to finalize preliminary front-end engineering and design work. When completed, the project is expected to export up to 20 million metric tons of liquefied natural gas per year.
