Alaska LNG project

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Description

A map of the possible Alaska natural gas pipeline route.

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

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.



Permitting

The Alaska LNG project needs many major federal permits.



Project news

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.

On Sept. 5, 2014, the Alaska LNG project sponsors filed with the Federal Energy Regulatory Commission to begin the environmental and safety review needed for federal authorization to build the project.

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.



Featured White Papers

Link to Tall stack of authorizations await Alaska LNG project.

Tall stack of authorizations await Alaska LNG project

We provide a brief guide to the federal agencies handling the major authorizations Alaska LNG would need.

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Alaska’s frigid climate could give state an edge in LNG market

Alaska’s frigid climate could give state an edge in LNG market

What is it that brings misery, numb toes and frozen pipes to Alaska residents but warms the hearts of people designing a liquefaction plant? The state’s cold weather.

Link to LNG carriers called ‘floating pipelines’

LNG carriers called ‘floating pipelines’

The story of LNG shipping is a tale of massive investment, sophisticated technology, engineering wizardry and repeated efforts to tame the ocean's mayhem.

 



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 Q&A with the Federal Coordinator about Alaska LNG.

Q&A with the Federal Coordinator about Alaska LNG

Federal Coordinator Larry Persily discussed the project, markets and competition in an interview with trade publication Petroleum News, August 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 LNG export application – July 2014.

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.

 

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 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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