FERC authorizes Alaska LNG project, grants extended operations deadline

The Federal Energy Regulatory Commission authorized the Alaska Gasline Development Corporation (AGDC) to liquefy and export liquefied natural gas (LNG) produced in the North Slope of the State of Alaska.

The Commission granted a Section 3 Natural Gas Act authorization, with conditions, to the AGDC – an independent, public corporation of the State of Alaska to site, construct and operate the Alaska LNG Project. The project would consist of liquefaction facilities on the Kenai Peninsula designed to produce up to 20 million metric tons per year (MMtpy) LNG for export.

It would also include an approximately 807-mile-long, 42-inch-diameter pipeline capable of transporting up to 3.9 billion cubic feet of gas per day to the liquefaction facilities, a gas treatment plant that would be located in the Prudhoe Bay at the North Slope and two additional natural gas pipelines connecting production units to the gas treatment plant.

The FERC approval for the Alaska LNG Project includes a 10-year deadline to begin operating, which is twice as much time as regularly allowed for other U.S. liquefied natural gas export terminal developers to build their multibillion-dollar facilities. The Alaska project will have until 2030 to begin operations. 

The U.S. Department of Energy (DOE) has authorized the project to export 20 MMtpy of LNG to nations with which the United States has a Free Trade Agreement (FTA). DOE also granted conditional authorization for the exportation of 20 MMtpy of natural gas to nations that do not have an FTA.

The Alaska LNG Project is the last remaining LNG project before FERC covered by the Fixing America’s Surface Transportation Act (FAST-41 Act). The Commission took action ahead of the scheduled June 4, 2020, final decision set by the statute.

FERC has acted on two other FAST-41 Act projects: Venture Global’s Calcasieu LNG Project, approved last year, and Jordan Cove LNG project, approved in March.

There are currently six LNG proposals pending before the Commission.

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