USA: Governor Parnell Welcomes Alaska LNG Progress

Executives from BP, ConocoPhillips, ExxonMobil, and TransCanada submitted a letter, meeting Governor Sean Parnell’s benchmarks for gas pipeline progress. The companies’ letter states the concept selection phase for an Alaska liquefied natural gas (LNG) project has been completed.

In this year’s State of the State address, Governor Parnell called on the companies to unite behind a concept for an all-Alaska project and provide details to Alaskans, including: the size of the pipe; the daily volume of gas; the location of a gas treatment plant; the number of compressor stations; the size and scope of a liquefaction plant and LNG storage facilities; and the number of off-take points for Alaska communities to obtain gas for local use.

“This represents historic progress. Never before has a gasline project been so specifically aligned and described in detail by the companies that have the capacity to build, fill, and operate it,” Governor Parnell said. “A critical part of the concept selection is to ensure that Alaska’s gas goes to Alaskans first, which will dramatically improve the quality of life and cost of living for many Alaskans. I am pleased the companies met the benchmarks and will provide a more detailed briefing in Juneau on the project. I look forward to working with them as they advance this public-private partnership.”

This spring, aggressive benchmarks require the companies to finalize an agreement to enter the pre-FEED stage – pre-front-end engineering and design – followed by a full season of field work this summer. By entering this phase, the companies will spend hundreds of millions of private sector dollars to advance the LNG project toward permitting and construction.

The project described in letter would be one of the largest LNG projects in the world. As the companies have been developing the project concept, the Parnell administration has undertaken significant outreach to overseas markets to highlight the comparative advantages of Alaska LNG exports, and to other key stakeholders, including federal officials in charge of export licensing.

“A successful Alaska LNG project would result in thousands of jobs and the opportunity for decades of domestically produced natural gas for homes and businesses in Alaska,” the companies wrote. “We remain committed to responsibly developing the State’s considerable resources and will keep you advised of our progress.”

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LNG World News Staff, February 18, 2013; Image: Alaska Pipeline Project