AGDC, BP Alaska Announce Agreement on Key Terms of Gas Sales Agreement

JUNEAU, AK—The Alaska Gasline Development Corporation (“AGDC”) and BP Alaska announced an agreement on key terms of a gas sales agreement, a major step forward for the Alaska LNG Project.

The deal establishes terms for price and volume, and the parties anticipate finalization of a long-term gas sales agreement in 2018 for AGDC to purchase BP Alaska’s share of 30 trillion cubic feet of gas from the Point Thomson and Prudhoe Bay units.

“During my call last week with BP’s chief executive officer, Bob Dudley, I thanked BP for its commitment to the Alaska LNG Project. I also commend Keith Meyer and his team at AGDC that worked to make this historic deal happen,” Governor Bill Walker said. “This agreement means Alaskans are one step closer to finally monetizing the vast reserves of natural gas on the North Slope. The end result will be thousands of jobs, a significant reduction in energy costs to power homes and businesses, and cleaner air. Having BP – one of our longtime participants in this project – commit its share for the gas on the sale underscores the progress we continue to make to build a stronger Alaska.