ExxonMobil To Supply North Slope Gas For 3-GW Alaska Power Campus Under 15-Year Deal

STAK Energy Corp. and ExxonMobil Alaska Production Inc. have signed a 15-year natural gas supply agreement to fuel a planned power plant on Alaska’s North Slope.

The agreement finalises a process that began with a gas sale precedent agreement in January and provides a new commercial outlet for North Slope gas, which has long lacked a route to market.

The gas will fuel power generation capacity of nearly 3 gigawatts at Project Aaka, STAK’s planned campus in an established North Slope industrial corridor with year-round road and airport access.

The campus will operate off-grid using high-efficiency gas turbines, with no expected impact on Alaska’s public electricity grid or utility ratepayers, STAK said. It will support advanced computing applications and is also expected to reduce energy costs for nearby North Slope infrastructure.

Project Aaka is targeting initial power generation in 2030, with expansion planned in phases through 2032. STAK said the gas supply agreement and the power project are expected to generate additional state and local tax revenue.

“For 50 years, the North Slope has produced gas without a way to put it to work at scale. Today, that changes,” said Sparrow Mahoney, STAK Energy’s founder and chief executive.

The agreement adds to efforts to develop commercial markets for North Slope natural gas, including the proposed Alaska LNG project.

The U.S. Geological Survey recently estimated that the North Slope holds 96 trillion cubic feet of undiscovered natural gas resources, nearly three times the region’s proven reserves.