Alaska, US: A new natural gas pipeline for Alaska has been proposed and will be jointly financed by the US and China. It will run parallel to the Trans-Alaska oil pipeline.
The US President Donald Trump and Chinese President Xi Jinping have signed the agreement to build a 1,280 km natural gas pipeline, which will move natural gas from the North Slope in Alaska to Asia.
Steel is the most important metal used in every part of the oil and gas industry from production and processing to the distribution of refined products, and the project raises opportunity for steel manufacturers.
Alaska and China will split the US$43 billion cost to finance and build the pipeline and terminals, and China has guaranteed the purchase of the gas.
About 75 percent of the liquefied natural gas will go to China, with Alaska retaining 25 percent for other regional markets in Asia, including Japan, South Korea and Vietnam.
Estimates have put proven gas reserves on the North Slope overall at 991 billion cubic metres, and Alaska could provide a generation’s worth of liquefied natural gas to China.
Representatives of the Bank of China and Sinopec, a Chinese oil and gas company, toured operations on the North Slope and visited facilities in Anchorage before making their decision, which had to be approved by the Chinese government.
Sinopec will be purchasing the gas, and the Bank of China will lend the necessary funds to Sinopec, and China Investment Corporation will invest in the project if there were to be an equity investment.