(SitNews) Anchorage, Alaska - The Alaska LNG Project reached a historic milestone today as BP Alaska and Alaska Gasline Development Corporation (AGDC) announced the parties have agreed to key terms of a Gas Sales Agreement, including price and volume. The terms are captured in a Gas Sales Precedent Agreement signed May 4, 2018.

The parties anticipate finalizing a long-term gas sales agreement in 2018 for AGDC to purchase BP Alaska’s share of 30 trillion cubic feet (TCF) of gas from the Prudhoe Bay and Point Thomson units. BP operates the Prudhoe Bay field – the largest oil and gas field in North America and owns a 26 percent share of Prudhoe Bay as well as a 32 percent share of the nearby Point Thomson field.

“BP has a long history in Alaska and Prudhoe Bay,” said Bob Dudley, BP Chief Executive. “We are very pleased to be part of the State’s vision to bring Alaskan natural gas to new and expanding markets globally. We think this is good for the State, good for BP and good for the environment.”

“The Alaska LNG project has made significant progress over the past year, and BP is pleased to sign this agreement,” said Janet Weiss, BP Alaska President. “This is an important project for the future of the Alaska oil and gas industry.”

This development comes just six months after President Donald Trump and President Xi Jinping witnessed the signing in Beijing of the five-party joint development agreement to monetize Alaska’s natural gas.

“This Gas Sales Agreement is a significant factor in progressing the Alaska LNG Project,” said AGDC President Keith Meyer. “We have secured the customers, we have progressed on the pipeline build with regulators and the finance community and now we have a commitment that there will be gas to sell and put through the pipeline. I look forward to continued negotiations to secure supply from other North Slope producers.”

Governor Bill Walker thanked BP for its commitment to the project.

“This agreement means Alaskans are one step closer to cleaner air, more jobs and more affordable energy to power homes and businesses,” Governor Walker said.

Walker said, “Having BP, one of our longtime partners on this project, commit its share of the gas for sale underscores the progress we continue to make as we work toward building a stronger Alaska.”

“During my call last week with BP’s chief executive officer, Bob Dudley, I thanked BP for its commitment to the Alaska LNG Project. I also commend Keith Meyer and his team at AGDC that worked to make this historic deal happen,” Walker said.

Walker said, “This agreement means Alaskans are one step closer to finally monetizing the vast reserves of natural gas on the North Slope. The end result will be thousands of jobs, a significant reduction in energy costs to power homes and businesses, and cleaner air. Having BP – one of our longtime participants in this project – commit its share for the gas on the sale underscores the progress we continue to make to build a stronger Alaska."

The Alaska AFL-CIO is also pleased the Alaska Gasline Development Corporation (AGDC) and British Petroleum (BP) have agreed to key terms of a Gas Sales Agreement to commit gas to the upcoming Alaska Natural gas pipeline.

“The Alaska AFL-CIO has been working closely with AGDC and the Alaska Department of Labor and Workforce Development to make sure that the thousands of jobs associated with this project go to Alaskans. To those who have been waiting to see if this project is ‘real’, that day has arrived. Get ready. We are going to work,” said Vince Beltrami, President of the Alaska AFL-CIO.

“We hope the nay-sayers and the lawmakers dragging their feet on this project will see today’s unprecedented announcement for what it is, the completion of the market loop; buyer, producer and seller. It’s time to stop waiting and start training.”

The Alaska AFL-CIO represents over 50,000 union workers around the state which includes many of the crafts needed to build the pipeline. The Alaska AFL-CIO's affiliates run dozens of registered apprenticeships that will prepare Alaskans to go to work to build the Alaska LNG pipeline.

The Alaska Gasline Development Corporation (AGDC) is an independent, public corporation of the State of Alaska. Advancing the development and construction of a North Slope natural gas pipeline and LNG export project is its top priority. AGDC is charged with securing a long-term energy supply for Alaskans.

Reporting and Editing by Mary Kauffman, SitNews

Source of News:

Alaska Gasline Development Corporation (AGDC)
www.agdc.us

Office of Gov. Bill Walker
www.gov.alaska.gov

Alaska AFL-CIO
www.akaflcio.org

 

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