AK LNG

Courtesy of Alaska LNG project

The Alaska LNG project would take natural gas from the North Slope of Alaska down to a proposed plant on the Kenai Peninsula, in Nikiski, where it would be liquified, shipped out and sold. 

The gas is already pumped out of the ground on the North Slope. But it isn’t currently sent to market. 

To get it there, the state wants to construct an 800-mile pipeline. And last year, it got the go-ahead from environmental regulators, under then-President Donald Trump, to build the massive project.

But now the Biden administration wants to take another look.

AK LNG

The Alaska LNG Project has been stalled for years, but the Alaska Gasline Development Corporation is hoping a new, lower cost estimate will make it more competitive.

The corporation released the revised cost estimate during a board meeting on Thursday. The new estimate sits at $38.7 billion, about $5.5 billion less than the previous estimate, which was done in 2015. The new estimate was put together by AGDC with BP, ExxonMobil, and Fluor Corporation, a consulting company with experience in LNG.

AK LNG

Since the state announced Nikiski as the chosen site for its liquefied natural gas plant project about six years ago, Kenai Peninsula residents have had an ear to the ground for developments. The project would use an 807-mile pipeline from the North Slope to deliver natural gas to a plant in Nikiski, where it would be liquefied and shipped out to international markets, all for a price tag of about $45 billion.

Since 2017, the state has been heading up the project alone through the Alaska Gasline Development Corporation. The project partners, including ConocoPhillips, BP and ExxonMobil, shied away from it after a number of international LNG plants came online, pushing down prices and making Alaska’s project too expensive to be competitive. But the state has pressed on, gathering permits and information. On Thursday, the Federal Energy Regulatory Commission gave the state the green light to build and operate the project.

Now it’s just a matter of how to pay for it. This is the last year the state is going to go it alone —it’s either find other sponsors or sponsors or sell the assets.

ECON 919 - Feds get latest AK LNG paperwork

Oct 4, 2019

 

The public comment period for a draft environmental impact statement on the AK LNG project closed this week, but not before the Mat-Su borough filed yet another motion asking federal regulators to again review the possibility of locating the terminus of the cross-state natural gas line at Port MacKenzie.

 

 


Draft EIS gets hearing in Nikiski

Sep 6, 2019

A public hearing is coming up on Wednesday in Nikiski that is vital to the proposed Alaska LNG project.
    The Draft Environmental Impact Statement is ready for review, and Wednesday’s meeting is one of eight being held in Alaska next (this) week.
    Public testimony on the draft EIS can be made at the public meeting, online, or via mail.

AGDC chief explains drawdown

Jul 26, 2019

 

By this time next year, the Alaska Gasline Development Corporation may itself have run out of gas. With no additional funding from the legislature, the group it put together a decade ago to try and get a gas line built from the North Slope is quickly shedding workers and preparing to back away from that effort.

 

 


Redoubt Reporter

The effort to bring a natural gas pipeline from the North Slope to Nikiski may be running out of gas. Market conditions have changed a lot in the six years since the Alaska Gasline Development Corporation was formed by the legislature. In a presentation to a joint meeting of the Kenai and Soldotna Chambers of Commerce Wednesday, former Borough Chief of Staff Larry Persily, who has tracked this and previous plans for an instate gas line over the years, laid out the numerous challenges that he says make the project next to impossible, at least for now.

 

 


No guarantees for progress on AK LNG in 2019

Dec 28, 2018
Redoubt Reporter

 

The Alaska Gasline Development Corporation spent a lot of 2018 talking about how much progress it was prepared to make on an instate gas line in 2019 and beyond. But investors are still being sought and an environmental impact statement due in February is no guarantee that permits will be issued.

 

 


Borough cities request new voice on gas project board

Dec 18, 2018
Alaska Gasline Development Corporation

 

It’s been two years since the Municipal Advisory Gas Project Review Board met. The group was formed in 2014 by former Governor Sean Parnell to give cities along the planned 800-mile route of the AK LNG line a voice in how the project is developed. And now, with a new administration in Juneau and a busy 2019 planned for the gas project, the group could be getting back together, and potentially with a new member.

Shaylon Cochran/KDLL

 

With a new administration set to begin work in Juneau next month, state leadership for the AK LNG project is beginning to change, too.

The Federal Energy Regulatory Commission has released nearly 200 more “data requests” regarding aspects of the AK LNG project. 

Many of the questions posed to the Alaska Gasline Development Corporation seek more detailed information about such things as preserving permafrost along the pipeline from the North Slope, plans for creating 29 camps for construction crews and the methods planned for crossing rivers along the way. 

Borough beginning to plan for LNG funds

Oct 2, 2018
Alaska Gasline Development Corporation

 

With plans moving ahead for the AK LNG project, so too are discussions about the federal money that may come along with it.

 

 


 

The AK LNG project got a slight boost from federal regulators this week. The Federal Energy Regulatory Commission, or FERC, will release its draft environmental impact statement a month ahead of schedule, in February next year.

Nikiski is identified as the best terminus for the Alaska Liquefied Natural Gas Pipeline Project submitted by the Alaska Gasline Development Corporation to the Federal Energy Regulatory Commission, and the Kenai Peninsula Borough wants to keep it that way.

At its meeting Tuesday, the borough assembly gave the administration the green light to apply for intervener status with the Federal Regulatory Commission as it considers AGDC’s AK LNG project. Having the status to intervene means the borough can weigh in on the project proposal with FERC. The deadline to apply to intervene is long past — May 1, 2017 — but the borough didn’t think that step was necessary at the time.

Now, though, other municipalities in the state are telling FERC the terminus should be somewhere other than Nikiski. John Quick, borough Mayor Charlie Pierce’s chief of staff, says the borough wants to be able to counter those claims.

 

This week, we’re talking about the AK LNG Project with the president of the Alaska Gasline Development Corporation, Keith Meyer and AGDC’s senior vice president of program management, Frank Richards.


AGDC announces Spur highway reroute plan

Jun 21, 2018
Alaska Gasline Development Corporation

 

After years of waiting, Nikiski residents finally found out what path the Kenai Spur highway will take around the proposed AK LNG plant Wednesday night.

 

 

No Borough reps to China for trade mission

May 14, 2018
Alaska Gasline Development Corporation

 

The AK LNG project seems to be picking up some steam. A former partner in the project, BP, came back aboard last week with an agreement to supply North Slope gas to the 800-mile trans state pipeline.

Between trying to incorporate and trying to prepare for a possible natural gas project, there is a lot happening in Nikiski these days. On this week's Kenai Conversation, we'll get a North Road update and speak with Stacy Oliva and Dan Gregory with Incorporate Nikiski, and Nikiski's representative on the borough assembly Wayne Ogle.

AK LNG

 

The Federal Energy Regulatory Commission has announced when it will complete its environmental review of the AK LNG project. December 2019 is later than the Alaska Gasline Development Corporation had hoped, but for now, that hasn’t changed its operating schedule.

 

 


Alaska Gasline Development Corporation

 

The Alaska Gasline Development Corporation has extended the public comment period for the Kenai Spur Highway rerouting project.

AGDC takes Spur reroute questions in Nikiski

Feb 15, 2018
Shaylon Cochran/KDLL

 

The Alaska LNG plant in Nikiski won’t be built with the Kenai Spur highway on its current path. Monday night, the Alaska Gasline Development Corporation was in town to talk about the options for relocating the Spur and take a few questions.

 

 


AK LNG — 'A long way to go,' says Williams

Jan 24, 2018

Alaska's economic future pretty much balances right now on a  natural gas pipeline running from the North Slope to Nikiski. It's the main focus of Governor Bill Walker's administration, and he's lobbied two presidents and several foreign leaders to get on board.

While the project is making progress through a recent agreement with China, it's far from a certainty, at least in the mind of local elder statesman John Williams.

Walker hints at AK LNG partnership

Jan 15, 2018

 

The state may have a new dance partner for the AK LNG Project. Governor Bill Walker tweeted over the weekend about meetings he had with the heads of some North Slope producers.

State remains bullish on AK LNG project

Jan 12, 2018
AK LNG

 

The Alaska Gasline Development Corporation will be meeting in Nikiski next month, providing an update on the Alaska LNG project. Officials are hopeful prep work can begin this year.

 

 


Update on the Alaska liquefied natural gas pipeline project with Fritz Krusen, vice president for LNG, and Nick Szymoniak, LNG negotiator, of the Alaska Gasline Development Corporation.

AK LNG Moving Ahead, But Slowly

May 24, 2017

The AK LNG Project continues forward, but not with the pace and fervor we saw when the project was first getting off the ground. The state of Alaska controls a bigger share of the project now, but doesn’t have a ton of extra money to put into it. And the economics are more difficult to make work with steady supplies of natural gas in the Lower 48 that are also a lot easier to get to. Larry Persily is chief of staff for borough Mayor Mike Navarre and this stuff is his specialty.