Alaska LNG Project : AGDC secures FERC authorization for LNG export project

The US Federal Energy Regulatory Commission (FERC) has granted authorization to the Alaska Gasline Development Corporation (AGDC) for its Alaska LNG Project for liquefying and exporting liquefied natural gas (LNG) produced in the North Slope of Alaska.

The FERC gave a Section 3 Natural Gas Act authorization, with conditions, to the AGDC for siting, constructing, and operating the Alaska LNG Project.

The LNG project in Alaska will have liquefaction facilities on the Kenai Peninsula designed to yield a maximum of 20 million metric tons per annum (MMTPA) LNG for export.

Also part of the Alaska LNG Project is a pipeline nearly 807-mile-long with 42-inch-diameter which will have a capacity of transporting up to 3.9 billion cubic feet of gas per day to the liquefaction facilities. A gas treatment plant to be built in the Prudhoe Bay at the North Slope and a couple of additional natural gas pipelines that will connect the production units to the gas treatment plant also make up the LNG project in Alaska.

The Alaska LNG Project already has authorization from the US Department of Energy (DOE) for exporting 20 MMPTA of LNG to countries with which the US has a Free Trade Agreement (FTA). DOE also gave conditional authorization for the exportation of 20 MMTPA of natural gas to countries that do not have an FTA with the US.

Frank Richards – President of AGDC said: “FERC’s authorization validates that the Alaska LNG Project can be safely built and operated, delivering numerous potential benefits with manageable environmental impacts. This approval, a major milestone in the development of the project, signifies the completion of a rigorous and comprehensive evaluation that has engaged environmental and energy experts at dozens of federal and state regulatory agencies.

“Obtaining FERC approval significantly de-risks the project execution with defined environmental stipulations. Our momentum continues as we complete our assessment of the project’s economics and competitiveness, and engage with potential project partners to determine the best path forward for the Alaska LNG Project.”

According to the FERC, the Alaska LNG Project is the last remaining LNG project covered under it by the Fixing America’s Surface Transportation Act (FAST-41 Act).

The FERC said that it has acted on a couple of other FAST-41 Act projects that include Venture Global’s Calcasieu LNG Project, which was approved in 2019, and Jordan Cove LNG project, which was approved in March.

Currently, there are six LNG proposals pending before it, said the FERC.