Skip to main content

AGDC and BP enter agreement regarding the Alaska LNG project

Published by
LNG Industry,


Alaska Gasline Development Corp. (AGDC) has announced that it has entered into a cooperation agreement with BP to collaborate in the development of the financial and tolling structure intended to advance the Alaska gasline and LNG project.

AGDC claims that this agreement is intended to assist in the development of a commercial structure for the project to enable the project financing. BP will contribute resources and staff, as well as a selection of third-party contractors.

The agreement has the following objectives:

 

  • To progress the effort to make use of third-party infrastructure funding sources as a means to decrease the cost of service on the project infrastructure.
  • To improve the understanding of tolling structures to identify a viable and competitive structure for Alaska, or alternative structures that could be viable.
  • To develop an agreement framework and phasing required to execute and operate the project successfully.
  • To provide AGDC with assistance in the development of the project on an expeditious timeline within AGDC’s target in-service date of 2023 – 2025.
  • To identify probable funding sources for front end engineering and design (FEED) and confirm the need for new equity investors.
  • To introduce a common language for the discussion of risk allocation in the commercial structure.
  • To identify a potential long-term financing structure to decrease the project’s cost of supply.

 

The President of AGDC, Keith Meyer, said: “AGDC is pleased to have the continued support of BP in advancing Alaska’s major gas infrastructure project.

"As we turn our attention in 2017 to the areas of commercial, financial structuring, and regulatory, BP’s input will be invaluable.”

Read the article online at: https://www.lngindustry.com/liquefaction/24012017/agdc-and-bp-enter-agreement-regarding-the-alaska-lng-project/


 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

LNG project news US LNG news