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ExxonMobil and AGDC sign binding gas sales precedent agreement for Alaska LNG

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LNG Industry,

The Alaska LNG project reached an important milestone today as ExxonMobil Alaska Production Inc. (ExxonMobil) and Alaska Gasline Development Corporation (AGDC) have agreed to certain key terms including price and a volume basis for a Gas Sales Agreement.

The parties anticipate finalising long-term gas sales agreements to purchase ExxonMobil’s share of 30 trillion ft3 of gas from the Prudhoe Bay and Point Thomson units. ExxonMobil operates the Point Thomson field where the company has a 62.75% share. ExxonMobil also has a 36.4% share of the nearby 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,” said ExxonMobil Alaska President Darlene Gates. “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.”

This development comes less than a year after President Donald Trump and President Xi Jinping witnessed the signing in Beijing of the five-party joint development agreement to monetise Alaska’s natural gas.

“The Alaska LNG project has made meaningful progress over the past year,” said AGDC President Keith Meyer. “We have secured the customers, we have advanced the project with regulators, and now we have ExxonMobil’s Gas Sales Precedent Agreement executed.”

Alaska Governor Bill Walker thanked ExxonMobil for its support of the project.

“This agreement means Alaska is one step closer to monetising the North Slope’s vast and proven natural gas resources,” said Alaska Governor Bill Walker. “I am pleased with the engagement and alignment from ExxonMobil for the Alaska LNG project.”

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