The US Department of Energy last week approved exports of liquefied natural gas from a facility planned for Alaska.
After conducting an environmental review, the federal government said the Alaska LNG project would provide economic and international security benefits. It also found that “protestors and commenters in opposition have failed to show that Alaska LNG’s proposed exports will be inconsistent with the public interest.”
Alaska Gasline Development Corporation (AGDC), which is developing Alaska LNG under a mandate from the Alaska legislature to commercialise Alaska’s North Slope natural gas for the benefit of Alaskans, received approval only for exports of LNG to countries with which the United States does not have a free trade agreement. The order notes that markets in Asia would be primarily targeted for exports from the project.
The plan for Alaska LNG includes a liquefaction facility on the Kenai Peninsula in southern Alaska and a 1,300-km pipeline to move gas from northern Alaska across the state. According to an article from Reuters, the $39bn project would likely be operational by 2030 if it gets investments and all required permits.
AGDC has not yet made a final investment decision on the project.
