Pantheon, AGDC looking to provide gas

Petroleum News

A March 28 London Stock Exchange release from Pantheon Resources includes word of discussions between Alaska Gasline Development Corp. and Pantheon to provide natural gas to an AGDC gas pipeline with initial delivery in 2029 and full delivery by 2032.

The goal is to provide much-needed natural gas to Southcentral Alaska.

Pantheon said the agreement being discussed is for delivery of up to 500 million cubic feet per day of natural gas at the company's North Slope Ahpun gas plant at a base price of less than $1 per million British thermal units. "Pantheon and AGDC are working cooperatively to identify mutually beneficial opportunities to further reduce the natural gas price," with Pantheon retaining rights to any helium produced, the company said.

Pantheon said tests of associated gas from Ahpun and Kodiak indicate a CO2 content of some 0.5%, "well below the 3% maximum limit for in-state utility gas."

"Alaska is facing an energy crisis, and AGDC is exploring every option to deliver a new, affordable, reliable, and long-term energy supply," AGDC President Frank Richards said in Pantheon's London Stock Exchange release. "This proposed agreement provides for more than enough gas to meet Alaska's in-state energy requirements, this gas features very low carbon dioxide content eliminating the need for additional treatment costs, and Pantheon's fields are conveniently situated directly along the Alaska LNG pipeline route. We look forward to working with Pantheon to finalize these agreements as we advance Alaska LNG."

David Hobbs, Pantheon Resources executive chairman, said: "We have made considerable progress during he past several months towards accessing funding on the least dilutive basis possible. The competitive advantage of our location and gas composition, which could potentially provide gas for in-state use through Alaska LNG, should allow Pantheon to capture the benefit of reduced numbers (and CapEx) of gas reinjection wells along with a path to low-cost commercialization of the helium potential now identified in the Kodiak field."

He said the company's target is to conclude non-equity funding by the end of the second quarter of the year.

--Petroleum News