Alaska passes bill to advance state’s LNG project

Alaska’s state legislature has passed Senate Bill 138, which would advance a large-diameter, 800-mile natural gas pipeline project to transport production from the Alaska North Slope (ANS) to a 15-18 million tonne/year LNG plant on the state’s south-central coast.

The project will now move into the pre-frontend engineering and design phase to further refine the cost and engineering aspects. The bill affirms the commercial agreement signed by the state, Alaska Gasline Development Corp. (AGDC), the producers, and TransCanada Corp. to advance the Alaska LNG project (OGJ, Jan. 27, 2014, p. 25).

Passage of SB 138 also expands the role and mission of AGDC, enabling it to carry the state’s equity interest in the project’s infrastructure, particularly the liquefaction and marine facilities. AGDC said it also will continue to aggressively pursue the advancement of the Alaska Stand Alone Pipeline (ASAP) project parallel to the Alaska LNG project.

“SB 138 is a huge validation of the legislature’s decision to create an Alaskan-owned pipeline development company,” said AGDC Pres. Dan Fauske. “AGDC will now lead the state’s participation in this exciting LNG export project, while continuing to advance ASAP, the smaller in-state alternative.”

Alaska Gov. Sean Parnell (R) previously described the move toward a larger-diameter pipe as “a simple answer to a complex question about how to lower the cost of getting Alaska’s gas to Alaskans: Get more gas in the pipe (OGJ, Jan. 28, 2013, p. 14).”

The larger diameter will allow enough gas to be shipped to both meet the state’s needs and still have material for export, while creating the economies of scale necessary to maximize project efficiency and reduce costs.

Related Articles

Sinopec, FTSI form JV to tap China’s unconventional resources

06/11/2014 Sinopec Group has entered into a 15-year joint venture agreement with FTS International (FTSI), Ft. Worth, with the intention of tapping into China...

Opposing groups want SEC to write new foreign payment rules

06/11/2014 The US Securities and Exchange Commission should move quickly to write new disclosure requirements for publicly traded US oil, gas, and mining comp...

ConocoPhillips, Suncor join Shell in deepwater exploration off Nova Scotia

06/11/2014

ConocoPhillips and Suncor Energy Inc. are joining Shell Canada as partners in exploring the deepwater Shelburne basin off Nova Scotia.

Osum to purchase Orion project from Shell for $325 million (Can.)

06/11/2014

Osum Oil Sands Corp., Calgary, plans to purchase the Orion oil sands project in Alberta from Shell Canada for $325 million (Can.).

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected