April 4, 2012
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Exxon Seals Deal With Alaska To Develop $26b LNG Plant

Alaska has reached a settlement with Exxon Mobil and its partners to develop a huge, long-fallow oil and gas field, possibly paving the way for a $26 billion pipeline and an export plant for liquefied natural gas.

The settlement, which resolves a long-running lease dispute over the Point Thomson field about 95km east of Prudhoe Bay, could allow for exports of liquefied natural gas via tanker to Asia and may boost Alaskan oil production after decades of decline.

In exchange for continued lease control, operator Exxon and partners BP and ConocoPhillips have agreed to build a pipeline from the field to deliver 70,000 barrels per day of liquids into the Trans Alaska Pipeline System.

The settlement also calls for the companies to produce 10,000 barrels per day of natural-gas condensates by the winter of 2015-16, state officials said.

The deal is a boon for TransCanada, which plans to build a natural gas pipeline from Alaska’s North Slope to the south coast, feeding a possible export plant that would ship gas to thirsty markets in Asia.

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