Governor Signs LNG Agreement with REI, Inc

Tuesday, December 23 2014 @ 07:08 PM AKST

Contributed by: Editor

December 23, 2014, JUNEAU – Governor Bill Walker at noon Tuesday will take an important step forward in securing Alaska’s energy future by signing a liquefied natural gas agreement with Japan-based Resources Energy, Incorporated.

“I look forward to signing this memorandum of understanding with Resources Energy, Incorporated,” Governor Walker said. “This agreement is an extension of Alaska’s longstanding partnership with Japan in energy markets.”

After the 2011 earthquake in Japan shut down the Fukushima nuclear power plant, several Japanese prefectures are looking to replace nuclear energy with liquefied natural gas supplies. Resources Energy, Inc., chose Alaska as the preferred source of LNG for Japan. The state has provided LNG to Japanese markets for more than four decades.

Resources Energy, Inc. is the American branch of Energy Resources, Inc. a Japanese company. REI was formed to explore the possibility of purchasing natural gas from Alaska and to build liquefaction facilities in order to export LNG to Japan. REI has even opened an office in Anchorage, and conducted studies that show an Alaskan LNG export project is viable.

REI has contacted many Japanese governmental and private organizations that also want to buy gas from Alaska. REI is also working on a smaller LNG project in Cook Inlet to begin deliveries by 2020. The state will work with REI on this project through a coordinated permitting system and potential partial funding through the Alaska Industrial Development and Export Authority (AIDEA).

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