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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

Alaska “gigaproject”

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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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.