The Alaska LNG Project is an integrated liquefied natural gas export project that would provide access to gas for Alaskans.
The project is anchored by the Prudhoe Bay and Point Thomson fields and is expected to produce approximately 3.3 billion cubic feet of natural gas per day.
Clean and Efficient Energy Production
The Alaska LNG Project includes a natural gas liquefaction plant and storage facilities and an export terminal at Nikiski on the Kenai Peninsula, an 800-mile gas pipeline from southcentral Alaska to the North Slope, a gas treatment plant and transmission lines connecting the project to gas producing fields.
The project is expected to produce and export up to 20 million metric tons of LNG per year using clean, energy efficient and safe production methods and technologies.
Read the Alaska Department of Natural Resources royalty study here.
BP, ConocoPhillips, ExxonMobil, and the State of Alaska signed a Heads of Agreement (HOA) establishing the guiding principles and basic framework under which the participants will advance the Alaska LNG Project. The State of Alaska was represented in the agreement by the Department of Natural Resources, Department of Revenue and the Alaska Gasline Development Corporation (AGDC).
The HOA provided the State of Alaska with the opportunity to invest in the $45 to $65 billion project. The Alaska Legislature passed the legislation supporting the state’s participation as a co-investor and the Governor signed it into law in May 2014.
The Alaska LNG Project is in the preliminary engineering phase of development. The project team is working to optimize and finalize the project concept, define the project sufficiently to support major regulatory filings, and fine-tune capital cost and schedule estimates before a decision is made by the project participants to move to the next phase of development.
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History of Natural Gas in Alaska
Discussions about a possible trans-Alaska natural gas pipeline date back to the early 1970s when the Prudhoe Bay field was first being developed. Initial plans considered many ideas, including building a large diameter pipeline through Canada to Lower 48 consumers and a pipeline to an LNG plant in southcentral Alaska. Market conditions, however, did not support the projects and plans were shelved.
The Alaska LNG Project is being built for the Asia Pacific LNG market, which is forecasted to have the energy demand and prices necessary to make the Alaska LNG Project commercially viable.
Read more about the history here.