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FERC authorises Alaska LNG project

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LNG Industry,

The Federal Energy Regulatory Commission has authorised the Alaska Gasline Development Corporation (AGDC) to liquefy and export LNG produced in the North Slope of the State of Alaska, US.

The Commission granted a Section 3 Natural Gas Act authorisation, with conditions, to the AGDC – an independent, public corporation of the state of Alaska 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 tpy LNG for export.

It would also include an approximately 807 mile long, 42 in. diameter pipeline capable of transporting up to 3.9 billion ft3/d of gas 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 US Department of Energy (DOE) has authorised the project to export 20 million tpy of LNG to nations with which the US has a Free Trade Agreement (FTA). DOE also granted conditional authorisation for the exportation of 20 million tpy of natural gas to nations that do not have an FTA.

The Alaska LNG Project is the last remaining LNG project before FERC covered by the Fixing America’s Surface Transportation Act (FAST-41 Act). The Commission took action to ahead of the scheduled 4 June 2020, final decision set by the statute.

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.

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