Alaska signs gas pipeline project deal with China

FILE: Alaska Gov. Bill Walker  (Photo By James Brooks, CC BY 2.0)

ANCHORAGE, Alaska — The state of Alaska has taken a major step toward realizing a long-sought pipeline to move natural gas from the North Slope to Asia.

The agreement Alaska Gov. Bill Walker signed Thursday in Beijing with Sinopec, China Investment Corp. and the Bank of China does not guarantee a pipeline will be built, but it gives the lingering liquefied natural gas project a jolt of life.

The agreement was signed as both U.S. President Donald Trump and Chinese President Xi Jinping watched. No financial terms were released, but it’s been estimated that the project could cost $43 billion.

The state is siding with interests from China after major oil companies stepped back from the project.