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Gas giants to advance Alaska LNG project

LNG Industry,

ConocoPhillips, BP, ExxonMobil, Alaska Gasline Development Corporation and TransCanada have signed an agreement to advance Alaska’s multibillion-dollar LNG project.

The project has already entered the pre-front end engineering and design (pre-FEED) stage. The singing of the agreement will allow the parties to move towards a permitting phase and carry out work needed to apply for an export licence with the US Department of Energy.

While the second phase of work is expected to commence in 2016, production from the LNG facility will not begin until 2025/26, according to Dan Fauske, president of the Alaska Gasline Development Corporation.

The project includes construction of a gas treatment plant at Prudhoe Bay to remove carbon dioxide and other harmful elements from the produced gas. Plans also include a 58-mile pipeline from Point Thomson gas field to Prudhoe Bay, and an 800-mile pipeline from Prudhoe Bay to Nikiski. An LNG plant, storage and tanker terminal will also be built at Nikiski.

Alaska’s Governor Sean Parnell welcomed the agreement, calling it a “milestone” development for the state: “I am pleased all parties continue to make progress on building an Alaska gasline project that will create thousands of Alaska jobs and fuel Alaska homes and businesses.”

Parnell’s full statement can be accessed here.

Edited from various sources by Katie Woodward

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