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Walker signs REI cooperation agreement State will share information with Resources Energy Inc. on liquefied natural gas; company’s goal is shipment of LNG to Japan Kristen Nelson Petroleum News
Alaska Gov. Bill Walker has signed a liquefied natural gas cooperation agreement with Resources Energy Inc.
At a Dec. 23 signing with REI President and CEO Shun Shimizu, Walker said he met with Shimizu Dec. 2 and thanked Shimizu for attending the Dec. 1 swearing in ceremony for the new administration.
Walker said it is an exciting day for Alaska when the market comes to the state with an expression of interest in natural gas.
Shimizu said the company has spent almost three years working to developing Alaska natural gas for Japan.
Resources Energy Inc. is the American branch of Energy Resources Inc., a Japanese company. REI was formed to explore the possibility of purchasing natural gas from Alaska and to build liquefaction facilities to export LNG to Japan. REI has an office in Anchorage and has conducted studies which the company says show an Alaska LNG project is viable.
Sharing data The cooperation agreement provides that REI will share with the state “all non-proprietary and non-confidential studies it has conducted regarding the feasibility of an Alaskan LNG project,” and will report to the state “on its activities to organize markets and develop LNG receiving terminals in Japan.”
The agreement also provides that the state and REI will “cooperate in the development of an LNG export project in the following areas: marketing, financing, ownership, development and acquisition of gas, domestic requirements and marine transportation of LNG.”
REI is developing a Cook Inlet LNG project as an initial step in marketing LNG to Japan (see story in this issue).
The cooperation agreement became valid when signed on Dec. 23 and has a term of one year - which may be extended if the parties agree.
The terms of the agreement state that it “is nonexclusive” and neither party is precluded “from engaging in similar or non-similar agreements or projects with third parties.”
Other agreements The Alaska Department of Natural Resources under the administration of former Gov. Sean Parnell signed a memorandum of understanding in December 2013 with the Japan Bank for International Cooperation “to promote financing for resource development projects in Alaska including an LNG export project” and with the Ministry of Economy, Trade and Industry in September 2014. The MOU with METI provides for an exchange of information on Alaska LNG export to Japan.
On Dec. 23 Walker also signed a memorandum of understanding with the Kyoto Prefecture in Japan providing that the state and Kyoto Prefecture “agree to closely exchange information” to promote a Japan-Alaska LNG project.
“The Port of Kyoto in Maizuru is a good natural harbor, being situated within easy access of the Kansai and Chubu metropolitan regions, and is well-suited to accommodate the shipment of LNG from Alaska,” the MOU says. It does not have an expiration date.
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