Alaska Gasline Development Corp. (AGDC) has revised the Alaska LNG project’s estimated cost downward by $5.5 billion, to $38.7 billion.
The project involves building a three-train, 20-million tonne/year liquefaction plant at Nikiski, Alas., on the Kenai Peninsula coast of southern Alaska, and an 800-mile, 42-in. OD pipeline to Nikiski from the North Slope, where it would draw gas especially from Point Thomson and Prudhoe Bay fields’ estimated 31-tcf reserves. A gas treatment plant would also be built on the North Slope.
AGDC described the cost reductions as capitalizing on “technology and process improvements developed in the LNG industry over the past several years, reflecting maturation of the LNG industry.” These improvements include advancements in gas liquefaction technology and modular construction techniques, lower engineering costs, and a streamlined project management team, the State of Alaska public corporation said.
AGDC last month obtained US Federal Energy Regulatory Commission authorization to construct and operate Alaska LNG (OGJ Online, May 21, 2020).
