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This was revealed by AGDC president Frank Richards during a press conference with Alaska Governor Mike Dunleavy on Monday in Anchorage.
“Today, after 10 years of planning, engineering, and permitting, I am announcing that AGDC has reached an exclusive framework agreement with a qualified energy company to privately lead and fund the development of the Alaska LNG project,” Richards said during the conferecent
He said this includes the carbon capture project on North Slope, the LNG export facility in Nikiski, and the pipeline which will deliver North Slope natural gas to Alaskans.
According to Richards, the terms of the framework agreement have been negotiated. The next step is for both parties to create binding agreements that will move the project forward.
Richards said the company has “extensive US and international natural gas and LNG experience.”
However, he did not reveal the name of the company.
Richards said AGDC will hold a formal joint announcement with the developer as soon as a definitive agreement is finalized.
“I expect the formal announcement of the definitive agreements within the next few months,” he said.
Once this is finalized, the partners will work on the final development stage, known as front-end engineering and design (FEED).
Richards said FEED will provide the information needed to undertake a final investment decision to initiate the construction of the privately-led $44 billion project.
State support
The announcement comes one month after AGDC received state support to develop the first phase of the project which includes the construction of a pipeline.
AGDC said that the Alaska Industrial Development and Export Authority (AIDEA) has approved a resolution to negotiate a letter of credit with AGDC to backstop the FEED costs on Alaska LNG Phase 1, the in-state pipeline portion of Alaska LNG.
This resolution brings Alaska a “critical step” closer toward a privately funded in-state natural gas pipeline, it said.
According to AGDC, the letter of credit will allow the company to unlock up to $50 million in private investment needed to move the Alaska LNG pipeline through FEED, the remaining development stage that must be completed before a final investment decision can be made.
AGDC said at the time it is in “advanced discussions” with potential project partners to privately fund and complete FEED.
LNG project
Alaska LNG is a federally authorized integrated natural gas and LNG export project under development to deliver natural gas within Alaska and export up to 20 million tonnes per annum of LNG.
The facility would have three LNG trains, two 240,000-cbm storage tanks, and two jetties to accommodate LNG carriers up to 217,000 cbm.
AGDC received all major federal permits and authorizations for Alaska LNG. It secured an approval from the US FERC back in May 2020 to construct the project.
The company previously said that it is pursuing an option to phase Alaska LNG by prioritizing the in-state pipeline portion of Alaska LNG consisting of the 42-inch pipeline from the North Slope to Southcentral Alaska to provide natural gas to avert the looming energy crisis facing the region.
Phase 1 of Alaska LNG does not involve construction of an LNG plant, and as a result has a materially lower capex requirement and construction timeframe, allowing gas transportation as early as 2029, it said.
In June 2024, AGDC and a unit of London-based Pantheon Resources signed a gas sales precedent agreement, which includes, among other conditions, a requirement for the Alaska LNG project to reach FID.