DOE approves export license for Alaska LNG
The Department of Energy yesterday announced a conditional authorization for the Alaska LNG project to export to countries without a Free Trade Agreement (FTA) with the United States. Alaska LNG is authorized to export 2.55 Bcf/d of liquefied natural gas for a period of 30 years, according to the release from the DOE.
“[The] DOE has concluded that the opponents of the Alaska LNG application have not demonstrated that the requested authorization will be inconsistent with the public interest,” reads the DOE’s release, “and finds that the exports proposed in this application are likely to yield net economic benefits to the United States.”
Alaska LNG has been described as a “gigaproject” by those involved, with an estimate price tag of $45 billion to $65 billion. The project has stayed on track despite the plummet in prices since November of last year, largely because of its size. The project is being developed by a partnership including energy majors BP (ticker: BP), ExxonMobil (ticker: XOM), ConocoPhillips (ticker: COP) and TransCanada (ticker: TRP).
Once complete, the Alaska LNG project will include a three-train, 6 million tons per annum (approximately 246 Bcf per annum) LNG plant and a gas treatment plant with expected capacity of 3.7 Bcf/d, connected by an 800 mile 42” pipeline with a minimum of five domestic gas off-takes along the pipeline route, according to an Alaska LNG project presentation.
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