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 make 15 million to 18 million metric tons a year of LNG, the equivalent of 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.
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.
On, the CEOs of ExxonMobil, ConocoPhillips and BP wrote to Alaska Gov. Sean Parnell to say they are working with TransCanada to reassess a liquefied natural gas export project from Alaska "as a result of the rapidly evolving global market."
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.
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.
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.
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.
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.
State signs commercial agreements for Alaska LNG project
This press release describes the January 2014 agreements between the state of Alaska, ExxonMobil, ConocoPhillips, BP and TransCanada.
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.
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 LNG project sponsors, shows possible alternate routes across Cook Inlet to the proposed Nikiski liquefaction plant.