Alaska confirms $43bn LNG deal with China

Alaska has reached an agreement with Chinese state-owned firms to develop liquefied natural gas (LNG).

The $43bn deal was made between Alaska Gasline Development (AGDC), China Petrochemical (Sinopec), CIC Capital, and the Bank of China (BOC).

The agreement sees the state and country jointly work on marketing, financing, an investment model, Chinese content in the US.

The gas infrastructure project will be a 20mn tonnes per annum LNG system.

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It will comprise of three train liquefaction plant in south central Alaska, a 800 mile pipeline that is 1.1m in diameter, and a gas treatment plant in the North Slope of Alaska.

“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,” reported the President of AGDC, Keith Meyer.

Sinpoec intends to purchase LNG from the project, strengthening China’s import.

 “As the most internationalised bank in China, Bank of China is willing to facilitate the China-US energy cooperation and provide financial solutions for this transaction by taking advantage of its vast experiences and expertise in international mega-project financing,” the Bank of China said in a statement.