Commercial Agreement Inked for Alaskan Gasline
Alaskan Governor Sean Parnell welcomed news that a commercial agreement for an Alaska gasline has been signed, marking a major milestone in bringing Alaska’s gas to Alaskans and markets beyond. The agreement, also known as a Heads of Agreement (HOA), was signed by the commissioners of Natural Resources and Revenue, ExxonMobil, BP (BP), ConocoPhillips (COP), TransCanada and the Alaska Gasline Development Corporation (AGDC). The HOA will be subject to public review by the Legislature this session.
“This commercial agreement, with its transparent set of terms, is Alaska’s roadmap to developing our vast gas reserves,” Governor Sean Parnell said. “This is truly a historic achievement. Not only have all the necessary parties aligned around a single project, but we’re moving forward with a project that’s on Alaska’s terms and in Alaskans’ interests. I extend my thanks to all of the parties for the hard work that went into this agreement, and look forward to working with legislators on laying the framework to best manage our gas resources.”
The HOA provides a roadmap for the Alaska liquefied natural gas (LNG) project to ramp up the Pre-Front End Engineering and Design (Pre-FEED) stage, and establishes a framework for negotiating multiple project-enabling agreements. The HOA includes the state as an equity partner, provides gas to Alaskans, lays out proposed fiscal terms, and includes pro-expansion principles that will allow third-party access to all of the project components, including possible construction of a new LNG train at the liquefaction plant.
The HOA ensures Alaskans’ interests are protected by outlining significant participation by AGDC, including a new subsidiary to carry the state’s interests in the project. It also recognizes that AGDC will continue to pursue its own Alaska Stand Alone Pipeline (ASAP) instate gasline project.
The Alaska LNG project is one of the largest export projects of its kind in the world.