Alaska plans to develop gas project, which BP and ExxonMobil abandoned

In the US state of Alaska, discussions have resumed on a giant gas project involving LNG production and pipeline construction from fields discovered by BP and ExxonMobil in North Slope County, Oilcapital reports.

In 2014, Alaska signed an agreement with large oil and gas companies on the implementation of this project, but the companies soon refused to participate in it, and the state authorities decided to act as the first number. In May, Alaska Gasline Development received a federal building permit for the project and now, together with an unnamed private company, is counting on government support measures that could cover about 75% of the costs in the first phase and help attract outside investment.

The initial cost of the project was estimated at $38.7 billion.

According to Reuters, the president of Alaska Gasline Development Corporation Frank Richards presented a report to the board of directors, which states that the gas pipeline worth $5.9 billion and a length of about 800 km will be able to start supplying gas to central Alaska in 2025. This is more than half the distance from gas fields in the north of the state to the proposed location of the LNG production on the Kenai Peninsula in southwestern Alaska.

As reported, Biden would restrict oil drilling in federal states of the United States.

Tags: gas, contracts, USA, gas production, LNG, foreign affairs, pipeline, infrastructure, natural gas

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