Alaska approves expansion plan for Point Thomson gas field

December 23, 2017 12:29 PM

UPDATED 2 MINUTES AGO

The state has approved ExxonMobil's plan to expand a gas field in far northern Alaska, ending months of negotiations after a previous plan was rejected.

Alaska's Energy Desk reports Gov. Bill Walker's administration gave approval on Friday that would expand development of the Point Thomson gas field east of Prudhoe Bay.

Walker says the expansion project would add momentum to the state's liquefied natural gas project.

The new plan details the two-year expansion that includes ExxonMobil negotiating a commercial agreement to send gas to Prudhoe Bay as well the engineering and design work for the necessary infrastructure.

The company says it's seeking to develop the field through a major gas sale. But if that doesn't work out, the company would consider selling it to Prudhoe Bay instead.