AGDC in talks with Chinese over $43 billion LNG project

    Anchorage, Alaska (KINY) - The Alaska Gasline Development Corp. is in talks with the Chinese entities who signed a preliminary pact proposing to join the state as partners in the LNG project.

    The state continues to negotiate with Chinese-owned companies looking for a major stake in the state’s $43 billion Alaska LNG project, but it appears the two sides will blow past an upcoming deadline for a firm deal.

    According to the Anchorage Daily News, officials with the Alaska Gasline Development Corp. said Friday the agency is in daily talks with the Chinese entities who signed a preliminary pact a year ago proposing to join the state as partners in the project.

    The project plan involves building an 800-mile pipeline that would be used to ship North Slope gas to Nikiski. At a facility there, the gas would be super-chilled into liquefied natural gas, for shipment to Asian buyers.

    The state gasline agency set Dec. 31 as the deadline for definitive agreements with the companies. China Investment Corp. would be a partial project owner, Bank of China a lender, and Sinopec would buy some of the gas. The companies are owned by the Chinese government.

    Talks will continue into next year, according to a statement from Jesse Carlstrom, an AGDC spokesman.

     

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