AGDC Receives Support Towards Backstop to Funding of FEED on Alaska LNG Phase 1 Pipeline

LONDON, UNITED KINGDOM / ACCESSWIRE / December 5, 2024

Pantheon Resources plc (AIM:PANR)(OTCQX:PTHRF) (“Pantheon” or the “Company”), an oil and gas company developing the Kodiak and Ahpun oil fields in close proximity to pipeline and transportation infrastructure on Alaska’s North Slope, notes the announcement made by Alaska Gasline Development Corporation (“AGDC”). AGDC announced that the Alaska Industrial Development and Export Authority (“AIDEA”) has approved a resolution to negotiate a letter of credit with the AGDC to backstop the costs of Front End Engineering and Design (“FEED”) on Alaska LNG Phase 1, the in-state pipeline portion of Alaska LNG.

This significant development is a major step forward in the progress of the Alaska LNG project. The FEED phase is a crucial stage in the development of any large-scale infrastructure project, as it involves the detailed engineering and design work that forms the basis for the project’s construction and operation. By securing the necessary funding to support the FEED on the Phase 1 pipeline, AGDC is demonstrating its commitment to advancing the Alaska LNG project towards commercialization.

The approval from AIDEA to negotiate a letter of credit with AGDC signifies a vote of confidence in the project’s economic viability and potential benefits to the state of Alaska. The Alaska LNG project has the potential to create jobs, generate revenue, and enhance energy security for the region. With AIDEA’s support, AGDC can proceed with confidence in the FEED phase, knowing that the necessary financial backing is in place.

Impact on Individuals

For individuals in Alaska, the advancement of the Alaska LNG project could have a positive impact on the local economy. The creation of jobs and increased economic activity associated with the project could provide opportunities for employment and growth in the region. Additionally, the development of the Alaska LNG project could help address energy needs in the state, potentially leading to more stable and reliable energy sources for residents.

Impact on the World

From a global perspective, the progress of the Alaska LNG project could have implications for energy markets and supply chains. The development of new sources of natural gas in Alaska could contribute to diversifying the global energy mix and enhancing energy security for countries that rely on imports of natural gas. Additionally, the successful implementation of the Alaska LNG project could demonstrate the feasibility of large-scale energy infrastructure projects in challenging environments, setting a precedent for similar initiatives around the world.

Conclusion

The recent support from AIDEA towards backing the funding of FEED on the Alaska LNG Phase 1 pipeline is a significant milestone in the advancement of the project. With the necessary financial backing in place, AGDC can proceed with confidence towards the next stages of development, bringing the Alaska LNG project closer to realization. The potential impacts of the project, both locally and globally, highlight the importance of investing in innovative energy solutions that can benefit communities and enhance energy security for the future.