ConocoPhillips has signed an agreement with the state of Alaska to form a new company aimed at selling natural gas to out-of-state facilities, according to recent news reports. Alaska Gasline Development Corp says that the joint-venture company will also try to partner with ExxonMobil and BP to build this multi-billion Alaska LNG project.
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| Image Source: lngworldnews.com |
This partnership is seen as a move towards building a stronger Alaskan economy. The recent months have been challenging for the state; with budget cuts forcing the closure of several government-owned schools and offices. This LNG opportunity could help improve the local economy and strengthen its position as a natural resource reserve in the country.
Gov. Bill Walker said that the potential to partner with three energy giants can play an integral role in the extraction and shipping of Alaska’s natural gas reserves. The new company would also create new opportunities for Alaska to reach the global market.
It is hoped that the joint venture would be also alleviate local government spending, as so far, all LNG projects have been financed by the state. ConocoPhillips hopes to find a partner in an engineering company to shoulder any construction risk and secure contracts with oil producers to sell the gas to Alaska at affordable rates.
The project will still take months to begin, however, current forecasts are optimistic. Recent financial studies reveal the competitiveness boost that Alaska needs in LNG industry. This venture is seen as a solution to these data.
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| Image Source: adn.com |
Chuck Kopp is a candidate for the Alaska State House. Learn more about current affairs in the state of Alaska on this Facebook page.
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