Tokyo Gas Inks LoI on Alaska LNG

Tokyo Gas December 4 signed a letter of intent on sale and purchase of LNG from the new LNG project in Alaska, being developed by Alaska Gasline Development Corporation.

“Hereafter, both of Tokyo Gas and Alaska Gasline Development Corporation commence the dialogue regarding the purchase of the LNG from the project and other businesses,” Tokyo Gas said December 5.

The project is expected to deliver from the North Slope gas fields on average about 3.5bn ft³/d of gas, much of it for international markets. The proposed liquefaction facility, located in Nikiski, will process, store, and transport up to 20mn mt/yr of LNG out of three liquefaction trains. But it could be well into the late 2020s or later before it enters production, as cheaper to develop projects already exist elsewhere.

The news comes close after a joint development agreement to advance the $43bn Alaska LNG project was signed November 9 between Alaska Gasline Development Corporation, the State of Alaska, China Petrochemical Corporation (Sinopec), CIC Capital and the Bank of China during US president Donald Trump’s visit to China.

Tokyo Gas has a strong good relationship with Alaska since 1969 when Tokyo Gas became the first Japanese buyer of LNG from its Kenai export plant, which has since ended operations. "We recognise that the coming year, 2019, is the 50th anniversary of the history of relationship between the State of Alaska and Tokyo Gas," the Japanese utility said.