Officials in Alaska plan to construct a natural gas pipeline that would transport gas from the North Slope to an export plant, Reuters reported. The cost of the 800-mile pipeline project is estimated to be between $45 billion to $65 billion. Alaska is working with oil and gas firms to develop the pipeline, including TransCanada, which agreed to be the builder, Exxon Mobil Corp and BP.
"This commercial agreement...is Alaska's roadmap to developing our vast gas reserves," Alaska Gov. Sean Parnell said in a statement. "This is truly a historic achievement."
Officials say they plan to tap into natural gas resources that are located near oil fields in Prudhoe Bay and Point Thomson, and eventually transport them in liquefied form to Asia, The Wall Street Journal reported.
"We have a compelling interest in seeing these resources monetized," Natural Resources Commissioner Joe Balash said, according to The Wall Street Journal.
The Alaska deal may involve building a new liquefied natural gas plant, which may cost up to $23 billion to construct. The pipeline project will be completed about 10 years after its start date.