U.S. Interior Department Approves Permits for Alaska LNG Project

The U.S. Interior Department on July 23 approved the issuance of rights-of-way permits for the Alaska LNG Project across federal lands managed by the Bureau of Land Management and National Park Service. The $40-$45 billion project, developed by Alaska Gasline Development Corp. in partnership with BP and ExxonMobil, is expected to be the largest in the U.S.

The approval orders adopt the Federal Energy Regulatory Commission’s (FERC) environmental impact statement, establishing environmental protections for wetlands, wildlife, and other resources. The project requires access across federal lands for about 230 miles of the 807-mile pipeline.

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.

Much of the liquefied natural gas will be exported to an international market with approval. The U.S. Energy Department has authorized the project to export 20 million metric tons per annum (MMTPA) of LNG to nations with which the U.S. has a free trade agreement (FTA) and another 20 MMTPA to non-FTA countries.

While FERC is the lead agency, the Fixing America’s Surface Transportation Act, requires one environmental review from each federal agency pertinent to the project contributing to the development of the environmental impact statement. Under the law, each agency produces a record of decision, as necessary. Other agencies involved in the Alaska LNG project are the U.S. Army Corps of Engineers, U.S. Coast Guard, U.S. Energy Department, U.S. Department of Transportation, Environmental Protection Agency, U.S. Fish and Wildlife Service, and National Marine Fisheries Service.