The proposed liquefied Natural gas (LNG) exporting project in the state of Alaska needs to have economics for everyone in a bid to continue to push forward the project, said Mike Dunleavy, governor of Alaska on Friday at a media briefing.

"If the state is going to be a partner, it has to be economical and has to have a return for whatever investment the state will put into," said Dunleavy.

It's also the same with other investors and the project has to pay out for everyone, added Dunleavy.

Currently, Alaska Gasline Development Corporation (AGDC), an independent public company, is working with oil and gas industry players on feasibility study of the LNG project, which was proposed in as early as 2013.

Dunleavy suggested that continuous warming of the Arctic may be a game changer for the LNG project with a designed annual production capacity of 20 million tonnes.

Arctic sea ice has reached its summer minimum extent 2018, clocking in at 4.59m square kilometres (sq km), which puts it joint sixth lowest in the 40-year satellite record alongside 2008 and 2010, according to data from the National Snow and Ice Data Center (NSIDC).

Arctic sea ice extent up to 23 September 2018, along with daily ice extent data for four previous years and the record low year (2012). The 1981-2010 median is in dark grey, and the grey areas around the median line show the interquartile and interdecile ranges. (Source: NSIDC)

If natural gas could be directly loaded on ships from North Slope, the expense of the proposed 800 miles of gas pipeline could be eliminated, according to Dunleavy.

Dunleavy added that abundance of natural gas in the market certainly is a concern for the prospects of the LNG project in the short term.

Conventional oil and gas resources in Alaska offer a long-term play and investment though they are a little more expensive, according to Dunleavy.

In 2016, oil giants including BP, ConocoPhillips and ExxonMobil pulled out of the LNG project due to concerns on poor competitiveness.

Still, BP and ExxonMobil signed an agreement with AGDC in early March to collaborate to advance the LNG project by identifying ways to improve its competitiveness and make progress in obtaining regulatory authorizations, according to a release by AGDC on March 8.