The Alaska Gasline Development Corporation (AGDC) and Tokyo Gas Co. Ltd have signed a Letter of Intent (LoI) for the sale and purchase of LNG to Tokyo Gas, as well as a commitment to explore other opportunities.
Alaska LNG is an integrated gas pipeline and LNG infrastructure project developed by AGDC that will link the proven conventional natural gas resource on the North Slope gas field in Alaska, US with the LNG markets in Asia.
According to a statement by Tokyo Gas, AGDC will consider treating the natural gas produced from the North Slope gas field and transporting it to the Nikiski LNG terminal and liquefying the gas, with the project to provide around 20 million t of LNG per annum.
This will help meet the growing market demands for LNG in Asia, with energy utilities like Tokyo Gas servicing more than 11 million customers in the Greater Tokyo area.
“Alaska is a trusted source of LNG,” Tokyo Gas President Michiaki Hirose said.
“For more than 40 years Tokyo Gas received shipments of LNG from Alaska.
“As the closest source of North American LNG to Japan, with a shipping time of as little as seven days point to point, Alaska LNG is naturally an economic and reliable source of LNG for Tokyo Gas.”
AGDC President Keith Meyer said the LoI would help continue the long-standing relationship between Japan and Alaska.
“I am pleased to help the longstanding LNG trade between Japan and Alaska continue for the next 40 years,” Mr Meyer said.
“The LoI signed today signifies the continuation of this decades-long relationship between Alaska and Tokyo Gas and helps round out the sales volumes from the Alaska LNG project.”
Alaska Governor Bill Walker said he was pleased to see the relationship grow.
“Tokyo Gas and Alaska have a special relationship in LNG and I was very pleased to host President Hirose for meetings and a project update in Juneau this past August to help continue that kinship,” he said.
For more information visit the AGDC website.
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