On June 28, AGDC signed a memorandum of understanding (MOU) with the Korea Gas Corporation (KOGAS) in Washington, D.C. The MOU establishes a framework for AGDC and KOGAS to cooperate in several areas of Alaska LNG, including project investment, development, operations, and other arrangements.
KOGAS is a state-run, natural gas giant. The organization is the primary LNG buyer in the Republic of Korea as well as the second-largest corporate LNG buyer in the world. The company operates four regasification terminals and thousands of miles of natural gas pipeline across South Korea and is an investor in natural gas infrastructure across the globe.
The MOU establishes a joint committee with decision-making authority and sets the framework for AGDC and KOGAS to collaborate on the potential for KOGAS to participate in all aspects of the development of Alaska LNG. Specific areas addressed in the MOU include Korean investment in the project, KOGAS cooperation on the engineering, procurement, and construction of the project components and operations.
MOUs have preceded essentially every major LNG sales and purchase agreement in the world. They constitute a significant step down the path toward a final commercial agreement.
Toward the end of Q2, AGDC commenced a foundation customer capacity solicitation. The capacity solicitation will determine the foundation customers who wish to reserve capacity on the Alaska LNG system segments.
The capacity solicitation presents an opportunity for North Slope gas resource owners and other qualified parties to subscribe to capacity and also serve to determine the most viable initial size and configuration of the project. The solicitation will gauge the level of interest from North Slope gas resource owners, AGDC, and downstream buyers.
Throughout the capacity solicitation process, AGDC will continue to directly market to LNG buyers in the Asia-Pacific region. AGDC will reserve transferable capacity on the Alaska LNG system to accommodate those volumes for customers that prefer to purchase LNG at the jetty rather than become a capacity holder.