Alaska LNG files DOE permit

Application: Alaska LNG asks to export fuel

Alaska LNG has filed an application with the US Department of Energy to export liquefied natural gas from a a giant planned facility.

The consortium of supermajors behind the project, which could cost between $45 billion and $65 billion to complete, is asking for permission to export up to 20 million tonnes per annum of LNG to both free-trade and non-free trade agreement countries for up to 30 years.

The export terminal project is already in the pre-front end engineering and design phase, which is expected to be completed in 2016.

The gas would originate from both the Prudhoe Bay and ExxonMobil's Point Thomson fields on Alaska’s North Slope, which together could yield as much as 3.5 billion cubic feet per day.

From a gas treatment plant on the North Slope, the gas would be pumped south in an 800-mile, 42-inch diameter pipeline.

Along the way, the gas would go through up to eight compression stations and at least five take-off points for in-state gas delivery.

Ultimately the gas would arrive at a proposed liquefaction plant in the Nikiski area on the Kenai Peninsula.

"This is a significant milestone for the Alaska LNG project and demonstrates continued progress towards developing Alaska’s resources," said senior project manager Steve Butt. "Filing of an export application is a critical step in commercialising North Slope natural gas."

According to a study by NERA Economic Consulting, submitted in support of the application, the Alaska LNG project would have "unequivocally positive" economic impacts in Alaska and the US.

The Alaska LNG project is anticipated to create up to 15,000 jobs during construction and approximately 1000 jobs for operation.

Partners in Alaska LNG include the Alaska Gasline Development Corporation (AGDC) and affiliates of TransCanada, BP, ConocoPhillips, and ExxonMobil.

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