(World Oil) – Glenfarne Group and ConocoPhillips Alaska have signed a gas sales precedent agreement supporting Phase One development of the Alaska LNG project, adding another long-term North Slope supply commitment to the proposed pipeline system.
Under the 30-year agreement, ConocoPhillips will supply North Slope natural gas volumes for the first phase of the Alaska LNG project, which includes construction of a 739-mile, 42-in. pipeline designed to transport gas to Alaska consumers.
According to Glenfarne, the agreement provides sufficient committed gas volumes to support a Phase One final investment decision and meet projected in-state energy demand.
The Alaska LNG project is being developed in two phases. Phase One centers on pipeline infrastructure intended to address declining natural gas production from Cook Inlet and strengthen long-term energy supply reliability across Alaska.
Phase Two would add LNG export facilities in Nikiski.
Glenfarne said the latest agreement means the project now has supply arrangements in place with all three major North Slope producers, including ExxonMobil, Hilcorp and ConocoPhillips, along with Great Bear Pantheon LLC, a subsidiary of Pantheon Resources.
“All major North Slope producers have now committed enough natural gas to support a Phase One final investment decision,” said Adam Prestidge, president of Glenfarne Alaska LNG.
ConocoPhillips Alaska President Erec Isaacson said the company views the project as a long-term opportunity to support development of Alaska’s natural gas resources while helping strengthen regional energy security.
The project continues advancing amid broader efforts to expand North Slope gas commercialization and address anticipated supply shortages tied to declining Cook Inlet output.
