Alaska’s congressional delegation today welcomed the announcement of a new Gas Sales Precedent Agreement (GSPA) reached between the Alaska Gasline Development Corporation (AGDC) and ExxonMobil Alaska.

“This is a positive step in our state’s efforts to build a new pipeline that will allow us to commercialize the North Slope’s prolific natural gas resources,” said the delegation. “While we recognize that much work remains to be done, we’re pleased to see the state using its authority and leverage under the Point Thomson settlement of 2012 to help move forward on this major infrastructure project.”

The GSPA establishes the price and volume of natural gas to be sold by ExxonMobil to AGDC and transported locally and globally. This is the second significant announcement for the gasline since the signing of a five-party joint development agreement to monetize Alaska’s natural gas in Beijing last year.