Pantheon Resources PLC (AIM:PANR, OTCQX:PTHRF) Executive Chairman David Hobbs joined Steve Darling from Proactive to announce that Pantheon’s wholly owned subsidiary, Great Bear Pantheon, has entered into a Gas Sales Precedent Agreement with AGDC subsidiary 8 Star Alaska LLC.
Alaska LNG, a federally authorized integrated natural gas and LNG export project, is under development to deliver natural gas within Alaska and export up to 20 million tonnes per annum of Liquefied Natural Gas. Pantheon agrees to supply up to 500 million cubic feet per day of natural gas at a maximum base price of $1 per million BTU in 2024 dollars. The agreement includes minimum daily contract volumes that determine the level of the take-or-pay obligation and plateau natural gas deliveries for 20 years, with the potential for extension beyond the initial term.
Hobbs told Proactive that AGDC is pursuing an option to phase Alaska LNG by prioritizing the in-state pipeline portion of the project, which consists of the 42-inch pipeline from the North Slope to Southcentral Alaska. This strategy aims to provide natural gas to avert the looming energy crisis facing the region. Phase 1 of Alaska LNG does not involve the construction of an LNG plant, resulting in a materially lower capex requirement and construction timeframe, allowing gas transportation as early as 2029.
AGDC is planning to undertake Front End Engineering and Design ahead of a Final Investment Decision planned for the middle of 2025. Hobbs highlighted the hard work of Pantheon’s team and assured shareholders that the company is following through on its plans for financial self-sufficiency and long-term value creation.
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