Pantheon Resources, Alaska LNG developer sign agreement on natural gas sales
June 4 (Reuters) - Pantheon Resources said on Tuesday it had signed an agreement establishing the terms for future sales of its natural gas to a unit of state-backed Alaska Gasline Development Corporation.
Pantheon subsidiary Great Bear Pantheon entered the agreement with a unit of AGDC to outline key commercial terms that will be part of a binding "take-or-pay" deal after AGDC makes a final investment decision (FID) on a proposed pipeline from Alaska's North Slope to its Southcentral region.
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The pipeline FID is currently planned for the middle of 2025.
The agreement details plans for Pantheon to supply AGDC with up to 500 million cubic feet per day of natural gas at a maximum price of $1 per million British Thermal Units (BTU) in current currency values, the company said. The agreement will have an initial length of 20 years with the potential for extension beyond that, it added.
AGDC is a state-owned company developing the Alaska LNG project, a federally approved liquefied natural gas (LNG) export plant that could export around 20 million metric tons of LNG per year starting 2029. Development of the North Slope to Southcentral pipeline is the first phase of that project.
Pantheon is developing the Ahpun and Kodiak fields in Alaska, which are estimated to hold close to 5 billion cubic feet of recoverable natural gas resources, according to the company.
A final gas sales agreement between AGDC and Pantheon will depend on the companies making FIDs on both their respective projects, Pantheon said.
(Reporting by Anjana Anil in Bengaluru; Editing by Jamie Freed)