Alaska LNG project

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An Alaska LNG-export plant could look something like this conception provided by the Alaska LNG SCLNG sponsors.

Source: Alaska LNG

Description

The project at a glance
Sponsors: ExxonMobil /ConocoPhillips /BP /TransCanada /state of Alaska
Estimated cost: $45 billion to $65 billion
(2012 dollars)
Components:
  • Construction of gas treatment plant at Prudhoe Bay to remove carbon dioxide and other impurities from produced gas.
  • Construction of 58-mile pipeline from Point Thomson gas field to Prudhoe Bay.
  • Construction of 800-mile pipeline from Prudhoe Bay to Nikiski.
  • Construction of LNG plant, storage and tanker terminal at Nikiski.

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 17 million to 18 million metric tons a year of LNG, processing 2.2 billion to 2.4 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.



Project news

A diagram of a recently proposed Chinese icebreaker.

A map of the possible Alaska natural gas pipeline route. (Click to enlarge.)

On July 18, 2014, 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 April 20, 2014, 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 Jan. 15, 2014, 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 Nov. 21, 2013, 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 Oct. 7, 2013, 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

Link to Alaska LNG could have right heat content for Asia buyers.

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.

Link to Liquefaction plant single largest cost for Alaska LNG project

Liquefaction plant single largest cost for Alaska LNG project

This white paper helps to explain why liquefation plants are expensive to construct and operate.

Link to Searching for a market, The 40-year effort to develop an Alaska natural gas project

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.



Featured presentations

Link to presentation May 2014 Alaska LNG project update.

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.

Link to presentation on the Alaska House Finance March 17 2014.

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.

Link to Natural gas market outlook & fundamentals of LNG business

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.



Featured documents

Link to Alaska LNG project state legislation, April 2014.

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.

Link to Memorandum of Understanding.

Memorandum of Understanding - January 2014

This MOU between the state of Alaska and TransCanada defines that company's role in the pipeline and gas treatment plant.

 

Link to Head of Agreement

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.

 

 



Featured videos

Link to video on the Alaska LNG project taped on February 4, 2014 for the Alaska State Legislature.

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.

Link to video on LNG export laws

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.

Link to video on the Alaska LNG project taped on February 4, 2014 for the Alaska State Legislature.

Resource Development Council presentation

Steve Butt of Alaska LNG presented at a Resource Development Council luncheon Nov. 21, 2013.

 
 

 

 



Featured maps and images

Link to proposed Alaska LNG project liquefaction plant image.

Proposed liquefaction plant

An LNG-export plant at Nikiski could look something like this illustration, provided by the Alaska LNG project sponsors.

Link to proposed Alaska LNG project liquefaction plant image.

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.

Link to proposed Alaska LNG project map of the pipeline route.

Alaska LNG project map

This map, provided by the Alaska Gas Pipeline Project Office, shows the components of an Alaska LNG project.

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