Jan 16 (Reuters) - Alaska has signed an agreement with majoroil and gas firms to bring stranded gas reserves to market bybuilding a pipeline to connect with a proposed liquefied naturalgas (LNG) terminal.
The deal was signed with TransCanada Corp and thethree major producers of Alaskan North Slope oil - Exxon MobilCorp, BP PLC, ConocoPhillips, AlaskaGovernor Sean Parnell said in a statement Wednesday.
The producers have been re-injecting about 8 billion cubicfeet per day of gas back into fields as the original plan tosend it to other U.S. states was derailed by the shale gas boom.
"This commercial agreement...is Alaska's roadmap todeveloping our vast gas reserves," Parnell said.
"This is truly a historic achievement...We're moving forwardwith a project that's on Alaska's terms and in Alaskans'interests," Parnell said.
The project aims to supply Asian markets as well as theAlaskan domestic market.
The Heads of Agreement, signed by the commissioners ofNatural Resources and Revenue and Alaska Gasline DevelopmentCorp (AGDC) includes the state as an equity partner.
The deal provides gas to Alaskans, lays out proposed fiscalterms, and will allow third-party access to all of the projectcomponents, including possible construction of a new LNG trainat the liquefaction plant, the governor said.
The Alaska LNG project would be one of the largest exportprojects of its kind in the world. The project could cost anestimated $45 billion to $65 billion and could include theconstruction of an 800-mile pipeline to a proposed LNG terminalin the Nikiski area on the Kenai Peninsula or another site.
Parnell said the agreement ensures Alaskans' interests areprotected by outlining significant participation by AGDC andrecognizes that AGDC will continue to pursue its own AlaskaStand Alone Pipeline instate gasline project.
The agreement will be subject to public review by theLegislature this session, the governor said.