Alaska gas pipeline deal with China

Alaska gas pipeline deal with China

PipelineGovernor Bill Walker signed early November 2017 an agreement with Sinopec (China Petroleum & Chemical Corporation) and Chinese investors. If this project moves forward by the end of 2018 a construction of the pipeline could begin.

Governor Walker is hoping to sign the final contracts by the end of this year. The beginning of the pipeline construction is expected to start in 2019, the overall cost of the project has not been released but it could cost an estimated $43 billion.

The President of the Alaska Gasline Development Corp, Keith Meyer stated the Alaska Corp would retain the ownership majority for this project.

China will be the primary customer with 3/4 of the supplies, while Alaska could market 1/3 in other Asia regions like Japan, South Korea and Vietnam.

This a major project that would boost the Alaskan economic, like the trans-Alaska oil pipeline did a generation ago.

the rich natural gas reserves on the North Slope is similar in length to the oil pipeline. It would transport the gas 800 miles to the coast of Kenai Peninsula, where it would be liquefied and shipped to Asia.

It is a long dream for Alaskan to see such a project taking place; with the decline of oil production from the North slope, it would provide a new financial boost for the state.

An estimated 35 trillion cubic feet of gas reserves on the North Slope could provide a generation worth of liquefied natural gas to China.

The State took the lead on the project with the blessing of major oil companies. Those companies plan to provide gas to the project from their leased North Slope fields, while focusing on other projects.

The state of Alaska has opened in Tokyo an office to help market its gas. It also signed an agreement with Korea Gas Corp., establishing a cooperation for the development of Alaska’s natural gas infrastructure.