Chinese companies join Alaska LNG project

The state-owned Alaska Gasline Development Corporation (AGDC) on Thursday said a number of Chinese companies have come onboard the planned $40 billion Alaska LNG export project.

AGDC said that, together with the State of Alaska, it has signed deals with China Petrochemical Corporation (Sinopec), CIC Capital Corporation (CIC Capital), and Bank of China (BOC) to advance the project.

The agreement was signed during the United States president Donald Trump’s visit to China.

Alaska LNG is designed as a 20 million tons per annum (MTPA) integrated LNG system comprised of a three-train liquefaction plant in Southcentral Alaska at Nikiski, an approximately 800 mile, 1.1 meter diameter gas pipeline, a gas treatment plant on the North Slope of Alaska and various interconnecting facilities to connect the Prudhoe Bay gas complex to the gas treatment plant.

Under the agreement, the parties have agreed to work cooperatively on LNG marketing, financing, investment model and China content in Alaska LNG, and get a periodic result by 2018.

“Today’s agreement brings the potential customer, lender, equity investor, and developer together with a common objective of crafting mutually beneficial agreements leading to increased LNG trade between Alaska and China,” said Keith Meyer, president, AGDC.

While Sinopec eyes LNG purchase on a stable basis from Alaska LNG, Bank of China and CIC Capital are looking to provide financial support for the project.

According to AGDC, the project is expected to start-up in 2023.