FERC halts NEPA process for Alaska line

The Federal Energy Regulatory Commission told Congress in its semi-annual report on an Alaska gas pipeline project that it will not move forward on the next step of its National Environmental Policy Act review of the TransCanada Alaska Co. project until TC Alaska decides whether it will proceed with a pipeline to North America or a liquefied natural gas project to export LNG to foreign markets.

FERC said in the report, issued Aug. 29, that it would keep the project docket open and accept quarterly status reports and related items.

TC Alaska terminated its initial open season on May 3, FERC said in the report.

On May 11, TC Alaska notified the commission that it was “curtailing interim work on the Alberta option” and requested that the record be kept open “for potential future use.” FERC said keeping the pre-filing docket open “will enable the draft resource reports and other information in the public record to remain viable until TC Alaska moves forward on either the Alberta option or another alternative.”

FERC said TC Alaska has indicated it is working with North Slope producers “to explore the feasibility” of an LNG export project which would include a pipeline from the North Slope to an LNG export terminal at tidewater in Southcentral Alaska.

The commission said TC Alaska has estimated it would file an application for that project in October 2014. TC Alaska announced a non-binding open season for a potential new pipeline system from Aug. 31 through Sept. 14.

FERC said it will continue to execute its responsibilities as the lead federal agency for conducting the NEPA review of the TC Alaska proposal and said federal permitting agencies are prepared to resume working under FERC’s pre-filing process and to continue work on an environmental impact statement “once TC decides whether it will proceed with a pipeline to serve North American markets (Alberta option) or embarks on a project to liquefy and export natural gas to foreign markets (LNG option).

—Petroleum News