The Alaska Gasline Development Corporation (AGDC) has engaged the Bank of China and Goldman Sachs to serve as global capital coordinators to AGDC’s Alaska LNG project.
This follows the Bank of China along with Sinopec and CIC Capital signing a joint development agreement with AGDC in November to collaborate on the advancement of Alaska LNG.
The signing of the agreement was witnessed by U.S. President Donald J. Trump and China President Xi Jinping.
Bank of China and Goldman Sachs will assist AGDC with raising equity and debt financing for the continued development of Alaska LNG. The investment banks and AGDC anticipate raising the funds in multiple rounds, which will include offerings to Alaska residents, Alaska municipalities, Alaska Native Corporations, and private equity sources.
Initial equity will be raised to meet AGDC’s working capital requirements and subsequent funding rounds will be used to fund full-scale development of Alaska LNG, once the project has received all necessary approvals.
Alaska LNG is a large integrated gas infrastructure project with three major components: a gas treatment plant located at Prudhoe Bay, an 807-mile pipeline to Southcentral Alaska with offtakes for in-state use, and a natural gas liquefaction facility in Nikiski to produce liquefied natural gas for export.
AGDC, in conjunction with its Independent Registered Municipal Advisor and Alaska Department of Revenue contractor, Hilltop Securities, and the Alaska Department of Law, conducted a rigorous selection process to find suitable candidates to serve as investment banks for Alaska LNG,” said Keith Meyer, president, AGDC. “Bank of China and Goldman Sachs are well positioned to provide AGDC with world-class institutional knowledge and resources required to arrange the equity and debt financing to build Alaska’s natural gas infrastructure and LNG export project.”
The Bank of China commented, “We believe it is a very important project for China-US economic ties. JDA parties are advancing the economic analysis of the project in order to lay more solid foundation for investment and financing. The Bank of China is pleased to work with AGDC and Goldman Sachs to advance the development of Alaska LNG.”
“Goldman Sachs is pleased to be working with AGDC and Bank of China on this important project,” said Kevin Willens, Co-Head of Infrastructure Investment Banking at Goldman Sachs.”