ANCHORAGE – The Alaska Gasline Development Corporation (AGDC) recently received a significant boost for its Alaska LNG Phase 1 pipeline project. The Alaska Industrial Development and Export Authority (AIDEA) has agreed to negotiate a letter of credit to support the Front End Engineering and Design (FEED) costs for the in-state pipeline portion of the project.
This development is particularly noteworthy for Pantheon Resources plc (AIM:PANR, OTCQX: PTHRF), an oil and gas company operating near the proposed pipeline route on Alaska’s North Slope. The resolution by AIDEA is seen as an essential step toward attracting private investment and advancing to a Final Investment Decision (FID).
Pantheon, which has already signed a Gas Sales Precedent Agreement (GSPA) with AGDC in June 2024, views the agreement as a potential avenue to secure the capital necessary to bridge the gap from the point of Ahpun FID to the company achieving cash-flow self-sufficiency.
David Hobbs, Executive Chairman of Pantheon Resources, expressed the company’s commitment to collaborating with AGDC and Alaskan officials. His statement emphasized the project’s importance for maximizing the benefits of the North Slope’s gas resources for Alaskans, as well as its role in enhancing the state’s long-term energy security and contributing positively to U.S. national security.
The AGDC announcement indicates progress for the Alaska LNG project, which aims to transport from the North Slope to markets in Alaska and beyond. This press release statement provides a glimpse into the ongoing efforts to secure funding and support for this significant infrastructure venture.
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