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.