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Alaska Will Accept LNG Capacity Requests Until Aug. 31

After securing a memorandum of understanding (MOU) with Korea Gas Corp. (Kogas) to cooperate on liquefied natural gas (LNG) issues, Alaska's state-owned natural gas corporation said it will accept expressions of interest for capacity on its Alaska LNG Project through the end of August.

Rosetta Alcantra, a spokeswoman for the Alaska Gasline Development Corp. (AGDC), told NGI on Thursday that the corporation will accept "executed letters of intent" through Aug. 31 for the project's full export capacity of up to 20 million metric tons of LNG per year.

According to a notice last month, the AGDC invited major oil producers along the North Slope to submit capacity requests, but "other qualified third parties without rights to North Slope natural gas will also be welcome to participate...including global LNG customers who seek to secure their own North Slope natural gas supply and toll on Alaska LNG."

The Alaska LNG Project is an integrated gas pipeline and LNG infrastructure project that would provide a link between gas resource on Alaska's North Slope with the growing LNG markets in Asia. The project includes a gas treatment plant located on the North Slope and transmission lines to transport gas from Prudhoe Bay and Point Thomson to the gas treatment plant. It also includes an 800-mile, 42-inch diameter pipeline to Southcentral Alaska with at least five take-off points for in-state gas delivery; up to eight compression stations; and a natural gas liquefaction plant near Nikiski, on the Kenai Peninsula.

Last week, the AGDC secured an MOU with Kogas, the world's second-largest corporate buyer of LNG. The MOU establishes a framework to cooperate in several areas of Alaska LNG, including project investment, development, operations and other arrangements.

In late December, the AGDC took control of the Alaska LNG Project from ExxonMobil Corp., BP plc and ConocoPhillips, after the companies determined the project was no longer economic when compared to other LNG liquefaction projects around the world.

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