Alaska LNG Project Gets Conditional Export Approval

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The Alaska LNG project has received conditional authorization from the U.S. Department of Energy (DOE) to export liquefied natural gas to non-free trade agreement countries. The application to export up to 20 million metric tons a year from Alaska was submitted to DOE last July. Authorization to export to nations with free trade agreements was granted in November 2014. “We are very pleased with the progress this represents,” said Steve Butt, Alaska LNG senior project manager. “As with any large-scale LNG project, access to as many markets as possible will improve the commercial viability of the proposed project.”

The Alaska LNG project is expected to provide significant economic benefits, including additional state revenues, new job opportunities, and access to in-state natural gas for homes and businesses in Alaska. The project is anticipated to create up to 15,000 jobs during construction and about 1000 jobs for operations.

The proposed project facilities include a liquefaction facility in the Nikiski area on the Kenai Peninsula, an 800-mile large-diameter pipeline, up to eight compression stations, at least five take-off points for in-state gas delivery, a gas treatment plant on the North Slope, and transmission lines to transport gas from Prudhoe Bay and Point Thompson to the gas treatment plant. Alaska LNG project participants are the Alaska Gasline Development Corp. and affiliates of ExxonMobil, TransCanada, BP, and ConocoPhillips.

The project would be the single-largest infrastructure investment in Alaska’s history and is forecast to generate billions of dollars in revenue for the state. Providing a market for Alaska’s natural gas may also spur additional exploration from the North Slope to south-central Alaska, leading to more industry activity in the state and therefore additional employment opportunities. The gas treatment plant will process more than 3 Bcfd, require more than 250,000 tons of steel for construction, and have a footprint of more than 200 acres, making it one of the largest such facilities in the world. The 800-mile pipeline will require years of construction. The liquefaction plant will have three trains.

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