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Final Responses Sent to FERC Over Alaska LNG Project

The Alaska Gasline Development Corp. (AGDC), which is working to develop liquefied natural gas (LNG) exports from the state, said it has submitted its final responses to post-application data requests made by FERC.

On Monday, AGDC, which has financial backing from three Chinese investment firms, said the Federal Energy Regulatory Commission asked 801 questions in total, covering a variety of subjects, over a permit application for the Alaska LNG Project, which the state-owned corporation filed last April. AGDC said the questions centered on what the Commission "identified as key issues, ranging from impacts on traditional Alaska native culture to turbidity and sedimentation analysis for impacts on fish...

"AGDC expects FERC will determine they now have the information necessary to complete their analysis and will soon publish a schedule for the National Environmental Policy Act [NEPA] process in the Federal Register that outlines the activities over the next year to develop a draft EIS [environmental impact statement] and a final EIS," AGDC said. "The outcome of this NEPA process will be a FERC order that authorizes AGDC to construct Alaska LNG."

The Alaska LNG Project, estimated to cost $43 billion, would have the capacity to annually export up to 20 million metric tons of LNG. The project is to include a three-train liquefaction plant in Southcentral Alaska at Nikiski; an 800-mile, 1.1 meter diameter gas pipeline; a North Slope gas treatment plant; and interconnecting facilities to connect the Prudhoe Bay gas complex to the gas treatment plant.

"AGDC's thorough and quick response to FERC's 801 data requests advances Alaska LNG closer to construction," said AGDC President Keith Meyer. "Today's accomplishment, on top of recent commercial agreements, is a clear signal to the markets that Alaska LNG is on track to deliver energy stability at competitive prices by 2024/2025."

Alaska Gov. Bill Walker, AGDC and three other parties signed a joint development agreement to finance the Alaska LNG Project in Beijing in November. The other signatories were China's state-owned Sinopec Group; the Bank of China; and China Investment Corp.

During his State of the State address last week, Walker called the Alaska LNG Project the "most promising economic opportunity" to develop the state's vast natural gas reserves and diversify its energy portfolio.

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