News Post
Deadline extended in Alaska for Chinese LNG supply commitment
Alaska has extended a deadline for Chinese companies to agree on LNG purchases and financing for the $43 billion Alaska LNG project, a spokesman for the state-owned Alaska Gasline Development Corporation said.
If built, the project would export up to 20 MMtpy of LNG, with 15 MMtpy reserved for China in the deal now being discussed and 5 million MMtpy to be available for other customers. AGDC is also in talks with potential buyers in Japan and Vietnam.
"The [Chinese] parties are actively engaged in negotiations and intend to reach a definitive agreement by June 30, 2019," said Jesse Carlstrom, spokesman for AGDC. This is a six-month extension from the original deadline of December 31, 2018, which was set in 2017.
Three Chinese firms -- Sinopec, Bank of China and China Investment Corporation -- and Alaska's AGDC have been in negotiations since November 2017, when the conceptual deal was agreed in Beijing in the presence of China's President Xi Jinping and US President Donald Trump, who was in China to meet Xi and sign trade deals.
Carlstrom said it was typical in negotiations on large energy projects to see deadlines extended, but he added that the current US-China trade "friction" has added complications. "The parties in China want to conclude a deal with Alaska to buy LNG'.
Source; AGDC, Platts
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