Alaska LNG delays FERC filing at least three months

OREANDA-NEWS. May 27, 2016. The massive Alaska LNG export project will delay applying to the US Federal Energy Regulatory Commission (FERC) for construction authorization by at least three months because of ongoing preliminary engineering work.

The project had planned to file a FERC application in September, but now the earliest it will file is December, it told the agency.

Alaska LNG in September 2014 entered FERC's pre-filing process. LNG projects are required to be in pre-filing at least six months to identify major permitting issues and stakeholders before filing a formal application for construction authorization.

The project, which has an estimated cost of \\$45bn-\\$65bn, would include an 800-mile (1,287km) pipeline to bring gas from Alaska's remote North Slope to a planned terminal in Nikiski, in south-central Alaska. Exports are scheduled to begin in 2025-26, but it is unclear if the project will be built because of its expense, low oil prices and current stagnant LNG market. However, new liquefaction plants will be needed in the coming years to meet growing demand and Alaska is close to major importers Japan and South Korea.

The US Department of Energy (DOE) has authorized Alaska LNG to export up to 20mn t/yr of LNG, equivalent to 2.5 Bcf/d (71mn m?/d) of gas, for 30 years to countries that have free trade agreements (FTAs) with the US. The project is awaiting a license from the DOE to also export to non-FTA nations.

The project partners are ExxonMobil, BP, ConocoPhillips and the state-owned Alaska Gasline Development Corp (AGDC). AGDC in November 2015 bought midstream company TransCanada's 25pc interest in the project.