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AKLNG project continues to move forwards

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LNG Industry,

The Governor of Alaska, Bill Walker, has thanked both ConocoPhillips and BP for signing to make public a gas availability agreement for their share of natural gas from the North Slope, Alaska, US.

This will allow the project to progress should either company end participation in the Alaska LNG (AKLNG) project during the preliminary front-end engineering and design (pre-FEED) stage.

Walker said: “This is an historic milestone in the AKLNG project.

“I am pleased that this agreement will be made public so Alaskans can better understand the project. Ensuring gas will be available to this gas line is a significant step in the right direction. I thank BP and ConocoPhillips for addressing the state’s concerns by agreeing to continue to negotiate mutually agreed and commercially reasonable terms under which their gas would be made available in the event either company does not proceed beyond pre-FEED. BP and ConocoPhillips have given us the assurances we need to move forward.

“With a US$3.5 billion budget deficit, this gas line is a must-have project for the state.

“We are committed to working with the legislature and our partners to see this project to completion and finally produce Alaska’s abundant supply of North Slope gas. I am proud of the work of the state has done to get this commitment of gas.”

Through the approval of the project budget and work plan, the state has signed onto AKLNG for an additional year. During said year, pre-FEED work on the project will be completed by the four project partners.

The project includes: storage facilities; a liquefaction plant; an export terminal at Nikiski; a gas pipeline that stretches for 800 miles to southcentral Alaska from the North Slope; a gas treatment plant; and transmission lines that connect the gas fields to the project itself. Once fully underway, the project is expected to export up to 20 million tpy of LNG.

Edited from press release by David Rowlands

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