BP operates the Prudhoe Bay field, the largest oil and gas field in North America and owns a 26% share of Prudhoe Bay as well as a 32% share of the nearby Point Thomson field.
Pointing out BP’s long history in Alaska and Prudhoe Bay, CEO Bob Dudley said the company was “pleased to be part of the state’s vision to bring Alaskan natural gas to new and expanding markets globally. We think this is good for the state, good for BP and good for the environment.”
State-owned AGDC called the BP feed-gas deal that will enable a pipeline to deliver the gas from the north to a liquefaction plant in south-central Alaska, a boost for the venture.
The deal comes about six months after President Donald Trump and Chinese President Xi Jinping witnessed the signing in Beijing of a five-party joint development agreement to monetize Alaska’s natural gas with financial backing from China. AGDC and the state signed a joint development agreement in November 2017 with three Chinese companies, China Petroleum & Chemical Corp., also known as Sinopec, as well as the financial institutions, the Bank of China and China Investment Corp.
“This (BP) gas sales agreement is a significant factor in progressing the Alaska LNG project,” said AGDC President Keith Meyer. “We have secured the customers, we have progressed on the pipeline build with regulators and the finance community and now we have a commitment that there will be gas to sell and put through the pipeline. I look forward to continued negotiations to secure supply from other North Slope producers,” he stated, in reference to companies such as ExxonMobil Corp. and ConocoPhillips.