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Alaska LNG project authorised to go ahead



The US Federal Energy Regulatory Commission (FERC) has authorised the construction and operation of the Alaska LNG project, run by the Alaska Gasline Development Corporation (AGDC).

Alaska LNG will create up to 5,000 jobs at peak construction
(Image via Alaska Public Media)

The project was one of our top 10 Oil & Gas projects to watch in 2020, as we waited to see if federal approval would be granted.It’s estimated to cost around $43 billion and will create up to 5,000 jobs at peak construction.

Alaska LNG will involve construction of liquefaction facilities on the Kenai Peninsula which will produce up to 20 million metric tons per annum (MMTPA) of LNG for export. The facilities will include three LNG trains, two 240,000 cubic metre storage tanks, terminal facilities and marine services and two loading berths capable of accommodating Q-Flex LNG carriers up to 217,000 cubic metres.

In addition an 807 mile long, 42 inch diameter pipeline will be installed, running from the North Slope gas fields to the Liquefaction facility, with a capacity to transport 3.9 billion cubic feet of gas per day.

A gas treatment plant is also being built in Prudhoe Bay at North Slope and two additional natural gas pipelines to connect it to production units. 

Construction will use up to 150,000 tons of steel.

The state of Alaska has also announced that they are seeking a new sponsor for the project, which has been paid for by the state corporation since 2016. A major question has been whether or not the facility is economically viable - though the FERC approval plus the already-obtained Department of Energy authorisation to export 20 MMPTA of LNG to other nations, suggests that it will be. 

“Today’s federal authorization is a key step in determining if Alaska LNG is competitive and economically beneficial for Alaska,” Alaska Governor Mike Dunleavy said in a statement.

“The ongoing project economic review and discussions with potential partners will determine the next steps for this project,”

Work on ambitious LNG projects in the Americas

Fircroft recruits engineering professionals for the American Oil & Gas industry. View all our available jobs in the region, or register your CV with us today.

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