AGDC signs MOU with KOGAS

The Alaska Gasline Development Corp. said June 29 that it signed a memorandum of understanding with the Korea Gas Corp. June 28 in Washington, D.C.

AGDC said the MOU establishes a framework for the two corporations to cooperate in project investment, development, operations and other arrangements for the Alaska LNG project.

A joint committee with decision-making authority is established under the MOU, establishing a framework for AGDC and KOGAS to collaborate on the potential of KOGAS participating in all aspects of the development of Alaska LNG, AGDC said, with specific areas addressed in the MOU including Korean investment in the project, KOGAS cooperation on engineering, procurement and construction of project components, and operations.

KOGAS, a state-run corporation, is the primary LNG buyer in the Republic of Korea - and the second-largest corporate LNG buyer in the world, AGDC said. KOGAS operates four regasification terminals and thousands of miles of natural gas pipelines across South Korea, and is an investor in natural gas infrastructure worldwide.

“The MOU reached yesterday, between AGDC and KOGAS, lays the groundwork for a significant relationship between the state of Alaska and the Republic of Korea,” AGDC President Keith Meyer said in a statement. “KOGAS in in the market for the development of vast natural gas resource base. Alaska LNG, anchored by the enormous proven natural gas resources of Alaska’s North Slope, is well-positioned to satisfy KOGAS’ needs for generations,” Meyer said.

He said the MOU is beneficial for both organizations.

“AGDC gains the opportunity to move Alaska LNG forward with an internationally recognized natural gas infrastructure company. KOGAS gains the prospect of investing in Alaska LNG as well as participating in all aspects of project development and financing.”

Meyer said the MOU is not exclusive and said AGDC is in discussions with other parties on development of the project.

In another June 29 release, Alaska Gov. Bill Walker said he met with President Moon Jae-in of the Republic of Korea while in D.C., and explained the numerous ways an Alaska LNG project could be mutually beneficial.

Walker said: “South Korea has one of the longest-running trade partnerships with Alaska” and “has been one of the largest consumers of Alaska’s coal, timber, and fish.”

“President Moon said he would like to add LNG to the list of imports, and offered his government’s support of the AKLNG project,” Walker said.

- KRISTEN NELSON