ExxonMobil in Deal to Sell Gas to Alaska LNG Project
Alaska Gasline Development Corporation (AGDC) said September 10 it has signed a gas sales precedent agreement with ExxonMobil covering certain key terms – including price and volume – under which ExxonMobil would supply gas to AGDC’s US$43bn Alaska LNG project.
With the precedent agreement in hand, the two parties anticipate finalising a long-term gas sales agreement to purchase ExxonMobil’s share of 30 trillion ft3 of gas from the Prudhoe Bay and Point Thomson gas fields on Alaska’s North Slope. ExxonMobil has a 62.75% interest in and is the operator of the Point Thomson field, and holds a 36.4% stake in the Prudhoe Bay field, the largest oil and gas field in North America.
“This precedent agreement is good for Alaska and ExxonMobil and represents a significant milestone to help advance the state-led Gasline project,” ExxonMobil Alaska president Darlene Gates said. “As the largest holder of discovered gas resources on the North Slope, ExxonMobil has been working for decades to tackle the challenges of bringing Alaska’s gas to market.”