Stak Energy (STAK Energy Corp.) and ExxonMobil Alaska Production Inc. have signed a 15-year gas sales contract to supply natural gas to a new power plant in North Slope, Alaska. This agreement ends a lengthy process that began in January with a gas sales agreement and leads to a new commercial pathway for North Slope gas, which has no prior market history.
Project Details and Energy Supply
The gas supplied under this contract will be used to generate nearly 3 gigawatts of electricity for Project Aaka, which Stak Energy has planned in an industrial corridor in North Slope, Alaska. The company will fully utilize high-efficiency turbine gas for electricity generation and has stated that it will have no impact on Alaska's public power grid or consumer costs. This project will also help supply energy for advanced computing applications and is expected to reduce energy costs for infrastructure near North Slope.
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Timeline and Financial Impacts
Project Aaka aims to begin its first electricity production in 2030 and gradually expand from 2032. Stak Energy has announced that the gas sales contract and the power project are expected to generate new tax revenues for the state and local areas.
Sparrow Mahoney, founder and CEO of Stak Energy, stated, "For fifty years, North Slope has produced gas without a way to utilize it on a large scale. Today, that situation is changing." This agreement adds to the growing list of efforts to commercialize North Slope gas, which also includes the Alaska LNG project. The United States Geological Survey (USGS) recently estimated that there are 96 trillion cubic feet of undiscovered gas in North Slope, nearly three times the proven reserves of the area.
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