The long-planned Alaska liquefied natural gas (LNG) project could competitively rival both foreign and Gulf Coast competitors with deliveries to Asia, according to a new cost analysis by Wood Mackenzie.

Alaska LNG could deliver super-chilled gas to Japan with a cost of supply (CoS) of $6.70/MMBtu, under the conditions studied by the consultancy. The latest CoS estimate is a reduction from $11.70/MMBtu reported in 2016, when Wood Mackenzie was last commissioned by BP plc and ExxonMobil, the project’s biggest backers at the time.

The 43% reduction reflects improvements implemented by state-owned Alaska Gasline Development Corp. (AGDC), as well as some assumptions that the researchers made about the future.

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