State Reveals More Details of Gas Deal

By  | 

FAIRBANKS, Alaska - The stars have finally aligned in the long-elusive effort to get Alaska's massive gas reserves out of the ground - or at least it seems that way right now.
Late Wednesday, state officials announced that Chinese firms and the state-run Alaska Gasline Development Corporation have inked a joint agreement to advance the liquefied natural gas project.
Presidents Donald Trump and Xi Jinping were in attendance as the State of Alaska, A-G-D-C, Sinopec, China Investment Corporation, and Bank of China signed the deal at the Great Hall of the People - a famed building at the edge of Tiananmen Square in Beijing which is used for legislative and ceremonial activities of the Communist Party of China.
AGDC said in a news release that the parties have agreed to work cooperatively on an LNG marketing, financing, and investment model, with periodic results by 2018.
Bloomberg reports that Beijing is prepared to invest up to $43 billion dollars in the effort.
What remains unclear at this point is how firm the financial commitment really is.
The history of efforts to develop Alaska's gas has been littered with potential partners who backed out when it came to fully committing funds for a gas line project.