BEIJING (Reuters) – China’s biggest state oil company Sinopec, one of the country’s top banks and its sovereign wealth fund agreed on Thursday to develop a $43 billion natural gas project in Alaska, as the cash-poor U.S. state seeks to revive its dwindling energy industry.
The deal had been in the works since April and was sealed during U.S. President Donald Trump’s state visit to China. It is the second-largest pact among a slew of agreements signed during the trip between the world’s top two economies that are worth as much as $250 billion.
Sinopec - China - Investment - Corp - CICUL
Sinopec , China Investment Corp [CIC.UL] and the Bank of China will work over the next year with the state government to hammer out the details of their involvement in the Alaska LNG project, according to a statement from project sponsor Alaska Gasline Development Corp (AGDC).
Alaska LNG is designed to carry natural gas from fields in the North Slope through an 800-mile (1,287 km) pipeline to south central Alaska for in-state use and to a liquefaction plant to produce up to 20 million tons of LNG per year for export.
Sinopec - LNG - Engineering - Work - Project
Sinopec will buy some of the LNG and may supply engineering work for the project’s construction, Bank of China will provide funding and CIC may take an equity stake, Alaskan Governor Bill Walker said on a call with reporters. AGDC will remain a majority shareholder, he said.
Alaska created AGDC in 2010 to build the project to tap the North Slope gas reserves, where production is expected to average about 3.5 billion cubic feet per day, according to Alaska LNG’s website.
Alaska - Oil - Gas - Sector - Projects
Alaska aims to shore up its oil and gas sector, which has struggled to compete with lower-cost shale projects in states such as Texas. Securing a Chinese customer, lender and investor would help Alaska overcome a multi-billion dollar budget deficit...
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