|
DOE orders two Alaska-specific supplements for Alaska LNG EIS
Kristen Nelson Petroleum News
The U.S. Department of Energy’s Office of Fossil Energy granted a rehearing request by Sierra Club on its 2020 final order issued to Alaska LNG Project LLC for export of liquefied natural gas for Alaska sources to non-free trade agreement countries.
Alaska Gasline Development Corp. filed to answer Sierra’s Club request.
DOE said it participated as a cooperating agency in the Federal Energy Regulatory Commission’s review of the Alaska LNG project.
It intends to prepare a supplemental environmental impact statement which, the agency said in a July 2 Federal Register notice, “will include an upstream analysis of potential environmental impacts associated with natural gas production on the North Slope of Alaska.” The SEIS will also include a life cycle analysis “calculating the GHG emissions for LNG exported from the proposed Alaska LNG Project, taking into account unique issues relating to production, pipeline transportation, and liquefaction in Alaska.”
DOE said the life cycle analysis “will examine the life cycle GHG emissions for LNG exported from Alaska by vessel to import markets in Asia (the markets targeted for exports from Alaska) and potentially in other regions.”
DOE has commissioned its National Energy Technology Laboratory to conduct the studies.
In August 2020 DOE issued the Alaska LNG Order under the Natural Gas Act to Alaska LNG Project LLC whose member companies are ExxonMobil Alaska LNG LLC, ConocoPhillips Alaska LNG Co. and Hilcorp Alaska LLC.
Currently, DOE said, AGDC holds the FERC authorization for the Alaska LNG Project and Alaska LNG holds DOE authorization for exports from the project. AGDC has said it is in negotiations to obtain an option to purchase Alaska LNG.
Rehearing request Sierra Club filed a request for rehearing in September and in October DOE issued a notice providing for further consideration of the request and of AGDC’s motion to answer.
In December, Sierra Club filed a petition for review of the Alaska LNG Order in the U.S. Court of Appeals for the District of Columbia Circuit. Sierra Club and the Center for Biological Diversity have also petitioned for review of FERC’s order for the Alaska LNG Project.
On April 15, DOE said, the D.C. Circuit issued a consolidated order in both cases, denying a motion to consolidate the DOE and FERC cases. DOE said its certified index to the administrative record was due April 19.
In its April 15 ruling DOE granted Sierra Club’s rehearing request.
DOE said the request is granted to conduct “two Alaska-specific environmental studies,” the life cycle analysis and “an upstream study examining aspects of natural gas production on the North Slope of Alaska.”
Since the issuance of DOE’s Alaska LNG Order, President Joe Biden issued Executive Order 13990 directing agencies to review regulations, orders and other actions issued after Jan. 20, 2017, that may increase GHG emissions or otherwise impact climate change. On Jan. 27 the president issued E.O. 14008 which set forth additional policies to address climate change.
To comply with the executive orders, DOE said it is necessary to “further evaluate the environmental impacts of exporting LNG from the proposed Alaska LNG Project to non-FTA countries.”
The life cycle analysis is necessary, DOE said, to fully address Sierra Club’s arguments that production, transportation and liquefaction issue “in Alaska are unique and require specific analysis.”
And second, in response to Sierra Club’s arguments concerning natural gas production on the North Slope, DOE said it “has determined that it is prudent to commission an environmental study examining potential ‘upstream’ impacts associated with any incremental natural gas production on the North Slope of Alaska for exports of LNG.”
North Slope natural gas is extracted during oil production and reinjected to maintain reservoir pressure and enhance oil recovery, DOE said, and because of that the “study on natural gas production also is expected to evaluate potential environmental impacts associated with diverting North Slope natural gas for the purpose of liquefaction and export - a change in use that would be made possible by the construction of the Alasa LNG Project’s pipeline connecting the North Slope production fields to the planned Liquefaction Facility.”
DOE said it would provide notice of the availability of each study in the docket for the proceeding and in the Federal Register and invite public comments on both studies.
Order not withdrawn Sierra Club had also requested that the existing order be withdrawn during the study proceeding, but DOE denied that request, saying it found no evidence that leaving the order in effect during the study proceeding would harm or otherwise impact Sierra Club’s interest and rights.
The project remains in a proposed phase, DOE said, and construction is not imminent. The project sponsor, AGDC, has not made a final investment decision, and recently told DOE that the project could be operational six years after the beginning of construction.
DOE said it saw no evidence construction would begin while the studies were being done.
- KRISTEN NELSON
| 