ExxonMobil will provide at least 560 million standard cubic feet per day (mmscfd) of natural gas to Phase 1 of the Qilak LNG 1 Project
Lloyds Energy subsidiary Qilak LNG has signed heads of agreement (HOA) with ExxonMobil Alaska Production for the supply of gas from the Point Thomson field to Qilak LNG’s proposed Alaska North Slope liquefied natural gas (LNG) export project (Qilak LNG 1 Project) in the US.
Under the terms of the HOA, ExxonMobil will provide at least 560 million standard cubic feet per day (mmscfd) of natural gas to Phase 1 of the Qilak LNG 1 Project.
The gas supply volume from ExxonMobil will be sufficient to allow the Qilak LNG 1 Project to export four million tons per year (mtpa) of LNG, over a 20-year period.
Qilak LNG chairman and CEO Mead Treadwell said: “The Qilak LNG 1 Project would deliver on Alaska’s long-held goal of commercializing North Slope natural gas.
“With this HOA and our recently completed pre-feasibility study, Qilak will now begin extensive feasibility efforts, including preliminary permitting, with a target of reaching Final Investment Decision (FID) by 2021.”
Capitalising on recent developments in Arctic LNG technology, the Qilak LNG 1 Project will enable natural gas to be directly exported from the North Slope of Alaska.
Phase 1 of Qilak LNG 1 Project will have 4mtpa export capacity
The first of the Qilak LNG 1 Project will have an export capacity of 4mtpa. The project has an option for additional capacity in future phases to meet the global demand.
ExxonMobil Alaska president Darlene Gates said: “ExxonMobil sees the development of the Qilak LNG 1 Project as an opportunity to develop Alaska’s gas resources.
“As the largest holder of discovered gas resources on the North Slope, ExxonMobil has been working for decades to tackle the challenges of bringing Alaska’s gas to market.”
Formed to identify and develop Arctic LNG projects in North America, Qilak LNG plans to commercialise previously stranded Arctic natural gas supplies for export to the Asian markets.
Qilak LNG president and COO David Clarke said: “While a significant portion of Qilak LNG 1’s initial 4 MTPA Phase 1 development will be dedicated to Lloyds Energy’s global downstream projects, Qilak is also committed to working with Alaskan stakeholders to investigate economically viable distribution to local Alaskan markets via coastal delivery or tanker trucks.”