New Agreement Bolsters Alaska’s LNG Commercialization Efforts

The State has committed to a formal working relationship with a major Japanese financial institution that wants to develop natural gas projects.

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Natural Resources Commissioner Dan Sullivan signed the memorandum of understanding with the Japan Bank for International Cooperation on Wednesday during a trip to Tokyo.

The deal is basically an act of financial diplomacy. It establishes that both parties have a mutual interest in getting Alaska natural gas to Japanese markets, and that there’s a potential for the two to work together on financing a gas pipeline or an export facility.

In a phone call from Japan, Sullivan said the agreement is about more than just this one bank. It’s also a good signal to other investors about the viability of Alaska projects.

“It is a big deal,” Sullivan said. “It boosts the credibility of Alaska’s gas commercialization efforts.”

Alaska has pursued a major natural gas project for years, but development has regularly stalled out for cost reasons and disagreements between major stakeholders.