Alaska Gasline Development Corporation (AGDC) and affiliates of ExxonMobil (ticker: XOM), TransCanada (ticker: TRP), BP (ticker: BP) and ConocoPhillips (ticker: COP) filed a FERC pre-filing request, effectively launching the early design phases of their Alaska LNG Project, an estimated $65 billion, 20 MM metric ton LNG facility, to be built in the Nikiski area on the Kenai Peninsula.

Concurrently, Russia’s independent gas producer Novatek (ticker: NVTK) confirmed it received a license from the Russian federal government to export liquefied natural gas, UPI reported this week.

“The Yamal LNG project has the capacity to produce about 16.5 million tons of natural gas and exports could target consumers in the Far East. As many as 16 ice-class carriers will be designated to ship LNG year-round to global consumers,” the report said.

The proposed Alaska LNG project’s facilities include a liquefaction facility in the Nikiski area on the Kenai Peninsula, an 800-mile, large diameter pipeline, up to eight compression stations, at least five take-off points for in-state gas delivery, a gas treatment plant located on the North Slope and transmission lines to transport gas from Prudhoe Bay and Point Thomson to the gas treatment plant.

Source: Alaska LNG

Source: Alaska LNG

Work to date in Alaska includes collecting the data necessary to support environmental permitting for the project and to support the routing and siting of project facilities. The majority of the work was focused along the pipeline route from Livengood to the proposed LNG liquefaction facility site in Nikiski.

Sponsors estimate the Alaska LNG project will produce about 15,000 jobs during construction and approximately 1,000 jobs to support its operation. An application for an LNG export license was submitted to the U.S. Department of Energy in July.

In a statement, Russian President Vladimir Putin said that developing large-scale programs on the arctic shelf was critical to Russia’s economic development.

It will be interesting to see how Alaska’s project progresses compared to the proposed Kitimat LNG project in British Columbia. The Kitimat plant has hit snags due to infrastructure constraints and rising cost projections, despite the government’s continuous search for investment.

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