Qilak LNG executes HOA with Exxonmobil
01 November 2019
Alaska-based Qilak LNG Inc a Lloyds Energy company, announced recently that a Heads of Agreement (HOA) has been entered into with ExxonMobil Alaska Production Inc. regarding the potential supply of natural gas from the Point Thomson field to Qilak LNG’s proposed Alaska North Slope liquefied natural gas (LNG) export project (Qilak LNG 1 Project). The HOA foresees ExxonMobil providing at least 560 million standard cubic feet per day (mmscfd) of natural gas to Phase 1 of the Qilak LNG 1 Project, based on the design concept of offshore liquefaction and loading, and icebreaking LNG carriers, to export 4 million tons per year (MTPA) of LNG over a 20-year term.
The Qilak LNG 1 Project seeks to capitalize on recent developments in Arctic LNG technology allowing natural gas to be directly exported from the North Slope of Alaska. This concept would significantly reduce the capital cost compared to projects that require a long-distance pipeline and a large minimum LNG order.
Qilak LNG has concluded that with available gas supply and competitive project economics, the Qilak LNG 1 project can be economically and technically viable.