ExxonMobil, ConocoPhillips, BP and TransCanada have agreed to begin the production of natural gas at their Point Thomson development in Alaska,US by May 2016.
The companies will develop Point Thomson in exchange for the commitment to commence natural gas and condensate production by end of 2015-2016, with initial production expected to produce about 200 million cubic feet per day of gas and 10,000 barrels per day of condensate.
A pipeline is also being designed to handle 70,000 barrels a day of liquid hydrocarbons from Point Thomson that will help move the fossil fuels to the Trans-Alaska pipeline.
Alaska’s North Slope holds more than 35 trillion cubic feet of discovered natural gas, and Point Thomson is a strategic investment to position Alaska gas commercialization.
The companies have also agreed to commercialize North Slope natural gas resources where large-scale liquefied natural gas exports from south-central Alaska will be assessed as an alternative to a natural gas pipeline through Alberta.
If a contract to sell the natural gas is not finalized by June 2016, the companies will expand natural gas condensate volume shipped to the Trans-Alaska pipeline from 20,000 to 30,000 barrels a day.