The Alaska Gasline Port Authority (AGPA) is pleased to release the results of its efforts over the past several years to attract the Asian market as interested buyers of a large volume of North Slope gas.
ExxonMobil/TransCanada recently contacted AGPA seeking a non-binding Solicitation of Interest (SOI) for New Natural Gas Pipeline Capacity as required under AGIA. ExxonMobil’s SOI closed last Friday, September 14th. In response, AGPA aggregated the Asian interest for LNG export from Valdez. The volume of gas nominated by these Asian companies plus projected instate volume exceeds the volume targeted by the AGPA for the proposed gas line to Valdez.
The target volume of gas for the gasline from Prudhoe Bay to Valdez is 2.7 billion cubic feet per day (bcfd). The non-binding nominations AGPA received from the Asian market for LNG off-take amounted to 2.8 bcf per day. When combined with projected instate gas market (.25bcfd -.50 bcfd), the total volume nominated for the large diameter gasline is 3.3 bcf per day.
Bill Walker, general counsel for APGA noted that “although the nominations are non-binding, such letters of interest are industry standard in engaging the market and match ExxonMobil’s nonbinding Solicitation of Interest.” Walker added, “This is an exciting milestone toward securing buyers for Alaska LNG.”
Several of the companies nominating volumes included major buyers from Asia who would qualify as Free Trade Agreement countries, for export under the pending export license AGPA recently filed with the U S Department of Energy. The companies include POSCO (Korea), Korea East West Power, KOGAS (Korea), GS Energy (Korea), PTT International Co. Ltd. (Thailand) and PT PGN LNG Indonesia. Not all companies designated a specific volume of LNG off-take.
The overwhelming interest expressed in the letters of interest confirms the Asian market is eager for an opportunity to buy Alaska’s LNG in large quantities.
This announcement comes on the heels of the Alaska LNG Summit held in Valdez this past week. Interested buyers and industry leaders traveled from Indonesia, Japan, Hawaii, and throughout the Lower 48 to attend the summit.
During the Summit, LNG experts in financing, marketing, shipping, and purchasing LNG detailed the urgency and viability of a gasline from Prudhoe to Valdez for LNG export.