A gas sales precedent agreement is a preliminary contract that lays out the main commercial terms—such as price formula, volumes, delivery method and key obligations—for a future long-term natural gas sale. For investors it matters because it shows that buyers and sellers have broadly agreed how a project would generate revenue, reducing commercial uncertainty even though a final, binding supply contract still needs to be signed.
final investment decisionfinancial
A final investment decision is the point at which a person or organization chooses to move forward with a particular project or purchase after reviewing all the necessary information and options. It is like deciding to buy a house after considering all the costs, benefits, and alternatives. This decision is important because it determines whether and when the investment will be made, impacting future financial plans and outcomes.
lng export facilitiestechnical
Liquefied natural gas (LNG) export facilities are the industrial ports, tanks and processing equipment that cool natural gas into a liquid, load it onto ships, and send it overseas—think of them as specialized airports and cargo terminals for gas. They matter to investors because their size, operating permits, construction costs and long-term shipping contracts determine future revenue potential and exposure to price swings, regulatory changes, and geopolitical supply disruptions.
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Committed North Slope Natural Gas Volumes Sufficient for Phase One Final Investment Decision, Exceed Alaska’s Energy Needs
ANCHORAGE, Alaska--(BUSINESS WIRE)--
Today Glenfarne Alaska LNG LLC, a subsidiary of Glenfarne Group, and ConocoPhillips (NYSE: COP) Alaskaannounced the companies have signed a gas sales precedent agreement to supply natural gas produced on Alaska’s North Slope for Phase One of the Alaska LNG project.
With this thirty-year agreement, Alaska LNG has now secured precedent agreements for sufficient volumes to support a Phase One final investment decision and supply enough natural gas to meet Alaska’s energy needs.
Glenfarne is developing Alaska LNG in two financially independent phases to accelerate project execution. Phase One consists of the 739-mile, 42-inch pipeline to transport natural gas to Alaska consumers to strengthen long-term energy security and address looming supply shortfalls resulting from declining Cook Inlet production. Phase Two will add the LNG export facilities in Nikiski.
Alaska LNG now has agreements with all three major North Slope producers: ConocoPhillips, ExxonMobil (NYSE: XOM), Hilcorp Alaska, as well asGreat Bear Pantheon LLC, a wholly owned subsidiary of Pantheon Resources plc (AIM: PANR).
Adam Prestidge, President of Glenfarne Alaska LNG, said, “All major North Slope producers have now committed enough natural gas to support a Phase One final investment decision. Today’s milestone agreement establishes the commercial terms for ConocoPhillips to supply gas and help Phase One of Alaska LNG provide energy security for Alaska. I appreciate Erec and his team for their continued collaboration and support as we advance this transformational energy project for Alaska.”
ConocoPhillips AlaskaPresident Erec Isaacson said, “ConocoPhillips shares Glenfarne’s commitment to developing Alaska’s resources for the long-term benefit of Alaskans. Our participation in Alaska LNG supports reliable access to responsibly produced North Slope natural gas while complementing our ongoing investment in Alaska.”
About Alaska LNG
Alaska LNG consists of an 807-mile 42-inch pipeline to deliver natural gas from Alaska’s North Slope to meet Alaska’s domestic needs and produce 20 MTPA of LNG for export. Glenfarne is developing Alaska LNG in two financially independent phases to accelerate project execution. Phase One includes the domestic pipeline to deliver natural gas to Alaskans. Phase Two will add the infrastructure to export LNG. Glenfarne owns 75% of Alaska LNG and the State of Alaska, through the Alaska Gasline Development Corporation, owns 25%.
About Glenfarne Group
Glenfarne Group is a privately held global developer, owner, and operator of energy infrastructure assets. Through its subsidiaries, Glenfarne owns and operates 60 energy assets through three core businesses: Global LNG Solutions, Grid Stability, and Renewables. Glenfarne’s permitted North American LNG portfolio totals 32.8 MTPA of capacity under development in Alaska, Louisiana, and Texas. For more information, please visit www.glenfarne.com.
