The Alaska Gasline Development Corp. (AGDC) said on Thursday that it has signed up China's state-run Bank of China (BOC) and leading U.S. investor Goldman Sachs to help raise funds for its 43-billion-U.S.-dollar liquefied natural gas (LNG) project.
"We now have formally engaged Goldman Sachs and Bank of China to really focus on the funding of this project," AGDC President Keith Meyer said Thursday.
BOC is one of the three large Chinese companies to sign a nonbinding framework deal with the AGDC in November for the LNG project, which consists primarily of a liquefaction and LNG export terminal facility and a nearly 1,300-kilometer pipeline to access Alaskan North Slope gas supplies.
The other two Chinese players are China Petrochemical Corporation (Sinopec), and Chinese investment company CIC Capital.
Under the joint development agreement that Alaska and the AGDC signed with Sinopec, CIC Capital and Bank of China in November, they will work together to advance the financial framework of the project and strive to reach definitive agreements by the end of this year, AGDC Communications Manager Jesse Carlstrom said.
Sinopec has built a pipeline longer and a gas-treating plant larger than the Alaska project, he said, adding, "They certainly got the capability."
Speaking of the possible negative impact of the current trade frictions between the United States and China, Carlstrom said the AGDC is paying close attention to the tensions, which came after U.S. President Donald Trump threatened to impose steep tariffs on Chinese imports worth up to 60 billion dollars.
In response, China has announced it would impose tariffs of 25 percent on 50 billion dollars worth of products from the United States.
"However, AGDC is confident Chinese participation in the project will continue because Alaska LNG provides a unique win-win opportunity for both the U.S. and China," Carlstrom said.
China is the third largest LNG consumer. Due to its green energy goals, the demand for LNG in China continues to grow, he said, adding that U.S. LNG exports to China present an ideal opportunity to reduce the bilateral trade imbalance.
Editor:Yaling
