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Exxon inks initial deal to supply gas to Qilak LNG export project in Alaska

Exxon Mobil Corp. subsidiary ExxonMobil Alaska Production Inc. signed a heads of agreement with Qilak LNG Inc. to supply natural gas to the Alaska North Slope liquefied natural gas export phase 1 project.

Exxon will supply at least 560 million standard cubic feet per day of gas from the Point Thomson field to Qilak's project, which is based on the design concept of offshore liquefaction and loading, and icebreaking LNG carriers.

The supply will allow Alaska North Slope LNG phase 1 to export 4 million tonnes per annum of LNG, according to an Oct. 23 news release from Qilak LNG.

Qilak has completed the pre-feasibility study for the project and is aiming for a final investment decision by 2021, Qilak CEO Mead Treadwell said in the release.

The company said it plans to deliver the gas to Asian markets, including Japan, and is in talks with other Asian countries to engage potential stakeholders in parts of the project.

Qilak, which is a Lloyds Energy Co., was formed to develop Arctic LNG projects in North America.