Japan-based natural gas provider Tokyo Gas has signed a Letter of Intent (LOI) with Alaska Gasline Development Corporation (AGDC) to begin talks relating to the purchase of liquefied natural gas (LNG) from the latter.
The companies will also look into other opportunities to materialize the $45bn Alaska LNG export project, which is touted to be a strategic gas infrastructure project for the US state of Alaska.
For the Alaska LNG project, AGDC will be responsible for the treatment of the natural gas drawn from the North Slope gas field in Alaska and to transport it to the Nikiski LNG terminal and liquefy it.
AGDC president Keith Meyer said: “I am pleased to help the longstanding LNG trade between Japan and Alaska continue for the next 40 years.
“The LOI signed today signifies the continuation of this decades-long relationship between Alaska and Tokyo Gas Co., Ltd. and helps round out the sales volumes from the Alaska LNG project.”
The Alaska LNG project will be an integrated gas pipeline and LNG infrastructure project, designed to have a capacity of 20 million tonnes per annum (MTPA).
It will serve as a direct and reliable connection between the vast proven, conventional, natural gas resource on North Slope with the emerging LNG markets in Asia.
Tokyo Gas president Michiaki Hirose said: “For more than forty-years Tokyo Gas Co., Ltd. received shipments of LNG from Alaska.
“As the closest source of North American LNG to Japan, with a shipping time of as little as seven days point to point, Alaska LNG is naturally an economic and reliable source of LNG for Tokyo Gas Co., Ltd.”
Last month, the US and China had signed a joint development agreement to take the LNG export project forward during US President Donald Trump’s visit to China.
In this connection, AGDC and the State of Alaska had reached agreements with China Petrochemical Corporation (Sinopec), CIC Capital Corporation (CIC Capital), and Bank of China (BOC).
As per the terms of the agreements, the parties will work closely on LNG marketing, financing, investment model apart from China content in the Alaska LNG project.
Image: Officials of AGDC and Tokyo Gas signing the LOI. Photo: courtesy of Tokyo Gas Co., Ltd.