Alaska-LNG-projectAlaska LNG project sponsors filed July 18 for federal permission to export liquefied natural gas for 30 years from a $45 billion to $65 billion development that includes a pipeline across Alaska and an LNG plant in the Nikiski area.

In an application to the Department of Energy, Alaska LNG, a partnership of ExxonMobil, ConocoPhillips and BP, asked that the export authorization's 30-year clock begin with the date of the LNG plant's first shipment or 12 years from the date permission is granted, whichever comes earlier.

The three North Slope Alaska oil and gas producers are working with the state of Alaska and pipeline company TransCanada to develop the Alaska LNG export project. The development team has started preliminary front-end engineering and design work, with a decision anticipated late next year whether to proceed to full engineering, design and permitting.

Their 212-page filing on July 18 seeks permission to export up to 20 million metric tons a year of LNG. That is a greater volume than the 17 million to 18 million-ton capacity plant they have discussed building. The larger volume provides flexibility as they polish designs for their LNG plant. A 20 million-ton-capacity plant could superchill about 2.5 billion cubic feet a day of vaporous natural gas into LNG.

The application asks for two levels of export permission.


The project at a glance

Sponsors: ExxonMobil /ConocoPhillips /BP /TransCanada /state of Alaska
Estimated cost: $45 billion to $65 billion
(2012 dollars)

  • Construction of gas treatment plant at Prudhoe Bay to remove carbon dioxide and other impurities from produced gas.
  • Construction of 58-mile pipeline from Point Thomson gas field to Prudhoe Bay.
  • Construction of 800-mile pipeline from Prudhoe Bay to Nikiski.
  • Construction of LNG plant, storage and tanker terminal at Nikiski.


Status: The project is in the pre-front-end engineering and design phase, or pre-FEED.



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