Alaska LNG Project Wins U.S. Energy Department Approval to Export Natural Gas

The U.S. Energy Department on Aug. 20 authorized the Alaska LNG Project LLC to export liquefied natural gas in a volume equivalent to 929 billion cubic feet per year from a facility to be constructed in south central Alaska. The authorization allows Alaska LNG to export natural gas to non-free trade agreement countries for a term of 30 years.

In May, the Federal Energy Regulatory Commission authorized the construction of the project, which includes an 800-mile pipeline and a liquefied natural gas export facility. Subsequently, in July, the U.S. Interior Department approved the issuance of rights-of-way permits for the project across federal lands managed by the Bureau of Land Management and National Park Service.

U.S. Senator. Lisa Murkowski, R-Alaska, commended the approval, saying that “a final export license from DOE is an important asset for Alaska LNG.” All requisite federal reviews and authorizations are expected to be completed by the end of this year. The project received conditional authorization for exports in 2015, subject to completion of review and approval from FERC.

The $40-$45 billion project to be constructed in the Nikiski area of the Kenai Peninsula in south central Alaska is being developed by a public corporation of the state called Alaska Gasline Development Corp. in partnership with BP and ExxonMobil. The facility is expected to be the largest integrated gas-LNG project in the U.S.

The project would be able to deliver up to 3.9 billion cubic feet of gas per day from gas treatment to the liquefaction facilities. The integrated pipeline project consists of a treatment facility on the North Slope, multiple offtake points for in-state residential and commercial use, and a liquefaction facility on the Kenai Peninsula.