AGDC receives FERC approval

Kristen Nelson

Petroleum News

The Alaska Gasline Development Corp. said May 21 that it has received authorization from the Federal Energy Regulatory Commission to construct and operate the Alaska LNG project.

“Today’s federal authorization is a key step in determining if Alaska LNG is competitive and economically beneficial for Alaska,” Gov. Mike Dunleavy said.

“The ongoing project economic review and discussion with potential partners will determine the next steps for this project,” he said.

AGDC President Frank Richards said: “FERC’s authorization validates that the Alaska LNG Project can be safely built and operated, delivering numerous potential benefits with manageable environmental impacts.”

“Obtaining FERC approval significantly de-risks the project execution with defined environmental stipulations,” he said. “Our momentum continues as we complete our assessment of the project’s economics and competitiveness, and engage with potential project partners to determine the best path forward for the Alaska LNG project.”

The governor made clear after the final environmental impact statement was issued for the project in early March that the state did not intend to continue as project sponsor.

Materials from an April 9 meeting of the AGDC board (see story in April 19 issue of Petroleum News) indicated that AGDC and strategic parties with which it has been working have a Dec. 31 target for identifying a new project sponsor. Meeting materials said the AGDC board does not support AGDC continuing as project sponsor beyond Dec. 31, and said if there was not sufficient interest by a new project sponsor, “AGDC will put the Alaska LNG Project assets up for sale in a formal RFP process.”

- KRISTEN NELSON