FERC Authorizes Alaska LNG Project

FERC granted authorization with conditions to the AGDC to site, construct and operate the Alaska LNG Project. The project would consist of liquefaction facilities on the Kenai Peninsula designed to produce up to 20 million metric tons per annum (MMTPA) LNG for export. The AGDC is an independent public corporation of the State of Alaska. The Alaska Journal of Commerce reported last week the state of Alaska was seeking a new sponsor for the project or it will sell off the assets. 

The project would also include approximately 807-mile-long, 42-inch-diameter pipeline capable of transporting up to 3.9 billion cubic feet of gas per day to the liquefaction facilities, a gas treatment plant that would be located in the Prudhoe Bay at the North Slope and two additional natural gas pipelines connecting production units to the gas treatment plant.

The U.S. Department of Energy (DOE) has already authorized the project to export 20 MMPTA of LNG to nations with which the United States has a Free Trade Agreement (FTA). DOE also granted conditional authorization for the exportation of 20 MMTPA of natural gas to nations that do not have an FTA.

FERC noted the Alaska LNG Project is the last remaining LNG project before FERC covered by the Fixing America’s Surface Transportation Act (FAST-41 Act). FERC has acted on two other FAST-41 Act projects: Venture Global’s Calcasieu LNG Project, approved last year, and Jordan Cove LNG project, approved in March.

There are currently six LNG proposals pending before the Commission.