Alaska LNG project
|The project at a glance|
|Sponsors: ExxonMobil /ConocoPhillips /BP /TransCanada /state of Alaska|
|Estimated cost: $45 billion to $65 billion
|Status: The project is in the pre-front-end engineering and design phase, or pre-FEED.|
The Alaska LNG export project would be among the world’s largest natural gas-development projects.
The sponsors are North Slope producers ExxonMobil, ConocoPhillips and BP, as well as pipeline company TransCanada and the state of Alaska. The companies estimate a cost of $45 billion to more than $65 billion (2012 dollars) for a project that includes a massive plant to cleanse produced gas of carbon dioxide and other impurities; an approximately 800-mile pipeline from Alaska’s North Slope to the liquefaction plant; and an LNG plant, storage and shipping terminal at Nikiski, 60 air miles southwest of Anchorage along Cook Inlet.
The 42-inch-diameter pipeline would be built to carry 3 billion to 3.5 billion cubic feet of natural gas per day. Alaskans would use some of this gas, and running the pipeline and LNG plant would consume some. The plant would have the capacity to make up to 20 million metric tons a year of LNG, processing 2.5 billion cubic feet a day of gas.
The project is in the pre-front-end engineering and design (pre-FEED) phase, which is expected to be completed in late 2015 or 2016.
On, Alaska LNG, a partnership of ExxonMobil, ConocoPhillips and BP, applied to the U.S. Department of Energy for permission to export liquefied natural gas for 30 years. The 212-page filing seeks permission to export up to 20 million metric tons a year of LNG, the equivalent of about 2.5 billion cubic feet a day of natural gas.
On, the Alaska Legislature approved a measure directing state negotiations with major North Slope oil and gas producers and pipeline company TransCanada toward a partnership to develop the proposed Alaska LNG project. The legislation amends multiple state laws, allowing negotiations to proceed toward the state becoming an equity partner in the multibillion-dollar project.
On, the state of Alaska and the four companies planning the Alaska LNG project released agreements that aligned their interests in principle and set the stage for the project's engineering, design and permitting work over the next two years. Under the agreements, the state would become an equity investor in the project.
On, ExxonMobil executives — a top marketing boss and the Alaska LNG project leader — told an Anchorage audience that the proposed $45 billion to $65 billion development can find long-term customers in the growing Asia-Pacific market despite the inherent challenges of a tremendously expensive project.
On, sponsors of the Alaska LNG project – ExxonMobil, BP, ConocoPhillips and TransCanada – said they had identified Nikiski, an industrial town 60 air miles southwest of Anchorage on Alaska’s Kenai Peninsula, as the lead site for location of the proposed liquefaction plant and export terminal.
Featured White Papers
Alaska LNG could have right heat content for Asia buyers
Alaska North Slope gas exported to Asia could hold a key attraction over other U.S. LNG exports: The Alaska gas would burn hotter.
Liquefaction plant single largest cost for Alaska LNG project
This white paper helps to explain why liquefation plants are expensive to construct and operate.
Searching for a market, The 40-year effort to develop an Alaska natural gas project
The 40-year-long epic quest to build an Alaska natural gas pipeline started with a battle royal in the mid-1970s.
May 2014 Alaska LNG project update
A presentation by project manager Steve Butt of ExxonMobil at a board meeting of the Alaska Gasline Development Corp.
Alaska gas line: Does the market need us?
Federal Coordinator Larry Persily discussed the strengths and weaknesses of the Alaska project at the Alaska House Finance Committee meeting in March 2014.
Natural gas market outlook and fundamentals of LNG business
A January 2014 presentation to the Alaska Budget & Audit Committee by energy analysts Enalytica, a consultant to the Alaska Legislature.
LNG export application – July 2014
Alaska LNG’s application to the U.S. Department of Energy for permission to export up to 20 million metric tons a year of LNG for 30 years.
Alaska LNG project state legislation – April 2014
State lawmakers in April 2014 passed Senate Bill 138, enabling negotiations to begin with North Slope oil and producers and TransCanada for state investment in the Alaska LNG project.
Heads of Agreement – January 2014
This document lays out terms for the state to become an equity owner and next steps to move the project forward.
February 2014 Alaska LNG project update
A presentation by project manager Steve Butt of ExxonMobil at a “Lunch and Learn” program that the Alaska House Resources Committee sponsored. Butt discussed the project’s developments and challenges.
Alaska LNG Exports
Video on federal laws governing Alaska North Slope natural gas exports, prepared by the Institute of the North with assistance from the Office of the Federal Coordinator for Alaska gas projects.
Resource Development Council presentation
Steve Butt of Alaska LNG presented at a Resource Development Council luncheon Nov. 21, 2013.
Featured maps and images
Proposed liquefaction plant
An LNG-export plant at Nikiski could look something like this illustration, provided by the Alaska LNG project sponsors.
Proposed gas treatment plant
A gas treatment plant at the Prudhoe Bay field could look something like this illustration, provided by the Alaska LNG project sponsors.
Alaska LNG project map
This map, provided by the Alaska Gas Pipeline Project Office, shows the components of an Alaska LNG project.