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Alaska LNG project files with DOE to export LNG for 30 years
The Alaska LNG project said July 21 that it has filed an application with the U.S. Department of Energy to export liquefied natural gas.
The application is for up to 20 million metric tons of LNG per year for 30 years to countries with existing free trade agreements with the United States, as well as non-free trade agreement countries.
The project would include North Slope processing facilities, a pipeline to take North Slope natural gas to tidewater and a liquefaction plant to turn the natural gas into liquefied natural gas for export.
“This is a significant milestone for the Alaska LNG project and demonstrates continued progress toward developing Alaska’s resources,” Steve Butt of ExxonMobil, senior project manager, said in a statement, calling the application “a critical step in commercializing North Slope natural gas.”
Positive economic impacts The release said a study by NERA Economic Consulting found the Alaska LNG project would have “unequivocally positive” economic impacts in Alaska and the United States, with an estimated 15,000 jobs during construction and some 1,000 for operation of the project.
Alaska LNG project participants include the Alaska Gasline Development Corp. and affiliates of TransCanada, BP, ConocoPhillips and ExxonMobil.
The project is in the pre-front-end-engineering and design phase. Pre-FEED is expected to be completed in 2016. Agreement by all parties would be required to move into the FEED phase, and again for a final investment decision at the end of FEED.
Governor lauds step “We are building Alaska’s future with a gasline to heat our homes and fuel Alaska’s businesses,” Alaska Gov. Sean Parnell said in a statement.
He said the project will have “hundreds of Alaskans out in the field this summer working to secure permits and hundreds more working to refine the engineering and design challenges of the project.”
“We have seen steady movement forward on this project over the course of the past year, and today’s news is another milestone met,” Alaska House Speaker Mike Chenault, R-Nikiski, said in a statement
He noted work in the 28th Legislature and by the administration and project sponsors “to keep the gasline momentum going.”
The Legislature passed enabling legislation for state equity participation in the project earlier this year. The state and project participants had negotiated a heads of agreement along with a memorandum of understanding between the state and TransCanada which was a step in winding up the state’s contract with TransCanada under the Alaska Gasline Inducement Act.
Passage of the enabling legislation gave state approval to both the HOA and MOU; the AGIA contract has since been replaced with a commercial agreement between the state and TransCanada.
Nikiski leading contender In related news, the Associated Press reports that Butt said recently that Nikiski remains the leading contender for the terminal site where gas would be liquefied for shipment to Asia, with project officials working with landowners on “fair and durable agreements.”
Butt said progress is being made, but if the needed land cannot be secured there are alternatives. AP said he declined to be more specific, except to say alternative sites would be at tidewater.
Butt also said the name “Alaska LNG” has been trademarked for the project.
- Kristen Nelson
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