Alaska LNG Project Concludes Capacity Solicitation

The Alaska Gasline Development Corporation (AGDC) announced that it has concluded the capacity solicitation process for foundation customer capacity on the proposed Alaska LNG Project, which is comprised of, among other components, an 800-mile pipeline and an LNG export terminal. The press release states that “an Alaska producer submitted a conforming intent to subscribe for capacity on the system,” and “each of the three major producers expressed interest in selling gas to AGDC for further sale to the global LNG markets” and that “[w]hen the agreements are completed, we will have gas supply and foundation customer capacity that will allow us to provide an attractive bundled LNG sale to global customers.” The producers and AGDC independently indicated their interest in reserving capacity on the Alaska LNG Project. The release also noted that development of the Alaska LNG Project may be phased to meet market demand and “to reduce initial capital cost without sacrificing long term capacity.” Further, “AGDC continues to make progress marketing directly to LNG buyers in the Asia-Pacific region.” The capacity reserved by AGDC “will accommodate these volumes for customers that prefer to purchase LNG at the jetty rather than become a capacity holder.”