77 Million Metric Tons of Carbon Eliminated Annually with Alaska Natural Gas
ANCHORAGE, AK (Oct. 7) – In a new report, the Alaska Gasline Development Corporation (AGDC) detailed the significant environmental and climate benefits achieved by developing the Alaska LNG Project, which will utilize North Slope natural gas to replace high-emissions coal in heavily polluted Asian markets and substantially reduce global greenhouse gas emissions.
Alaska Governor Mike Dunleavy said, “Alaska has some of the world’s strictest environmental laws, and Alaska natural gas should be a key component of any realistic energy roadmap to a cleaner climate. This report documents the substantial climate benefits that clean-burning Alaska natural gas has for our environment here at home and around the world.”
AGDC President Frank Richards added, “The world is increasingly focused on the climate impact of new high-volume, reliable energy projects. This timely assessment uses respected and transparent methodologies to quantify the value of replacing high-emissions energy sources in foreign markets with low-emissions Alaska LNG. The justification for Alaska LNG is compelling.”
The report, Greenhouse Gas Lifecycle Assessment: Alaska LNG Project, documents how Alaska LNG reduces annual carbon dioxide equivalent emissions generated by a representative Asian regional coal supply chain by 77 million metric tons, a 50% reduction.
According to data from the U.S. Environmental Protection Agency, eliminating 77 million metric tons of carbon emissions is the annual equivalent of taking 19 coal-fired power plants offline or 16.8 million passenger cars off the road for a year, or eliminating the emissions generated by powering 9.3 million homes or the emissions from burning 8.7 billion gallons of gasoline.
The report also compares Alaska LNG emissions to equivalent LNG projects in Louisiana and Australia that have undergone similar lifecycle analyses, and documents that the production and delivery of Alaska LNG provides 50% lower greenhouse gas intensity compared to these projects.
Alaska LNG’s relative emissions efficiencies reflect Alaska’s close proximity to target Asian markets, which reduce round-trip shipping times by about a month, efficiencies resulting from shared facilities for North Slope oil production, the utilization of a single pipeline and compressor system, and fewer gathering and boosting emissions required by the North Slope’s compact production footprint.
The report uses the same methodologies and standards employed by the U.S. Department of Energy’s National Energy Technology Lab, and addresses the full range of project components, including extraction, production, gathering and boosting, transmission pipeline, end-user pipeline transmission, and power generation and distribution.
The report was produced on behalf of AGDC by a specialized team of independent third-party air quality, environmental, and energy experts from EXP, SLR Consulting, and ALG (Ashworth Leininger Group). The report was published today as part of AGDC’s October board meeting and is available at [https://agdc.us/wp-content/uploads/2021/10/Greenhouse-Gas-Lifecycle-Assessment_Alaska-LNG-Project.pdf].
Click here to download a PDF of the full Press Release.
The Alaska Gasline Development Corporation (AGDC) is an independent, public corporation of the State of Alaska charged with maximizing the benefit of Alaska’s North Slope natural gas though the development of infrastructure to deliver gas to local and international markets. More information about the Alaska LNG Project can be found at Alaska-LNG.com. More information about AGDC is available at AGDC.us.
$5.5 Billion (12.4%) Cost Reduction Enhances Ability to Deliver Competitively Priced LNG
ANCHORAGE, AK (June 25) – Today the Alaska Gasline Development Corp. (AGDC) released an updated $38.7 billion cost estimate for the Alaska LNG Project, which will increase the project’s ability to deliver natural gas to Alaskans and LNG to export markets at competitive prices. The updated cost estimate was presented during today’s AGDC board meeting.
The updated estimate reflects a $5.5 billion (12.4%) cost reduction off the previous $44.2 billion cost estimate, which was compiled in 2015 by the project’s previous joint venture leaders, which included BP Alaska, ExxonMobil Alaska, ConocoPhillips and AGDC. The new estimate will enhance the competitive price of LNG from the Alaska LNG Project versus similar projects vying to serve major Asian markets. Long-term LNG demand is forecast to exceed available supply as consumers seek the environmental benefits of LNG over other energy sources.
The $38.7 billion estimate announced today was established during a rigorous, fourteen-month process incorporating significant third-party natural gas and LNG industry expertise. Along with AGDC staff, participants included representatives from BP, ExxonMobil, and Fluor Corporation, an international engineering, procurement, construction, and maintenance company.
Alaska LNG Project cost reductions capitalize 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 cost estimate validates the efficiency of the Alaska LNG project’s design and major components, including a North Slope gas treatment plant, an 800-mile pipeline, and a Nikiski, AK- based LNG plant.
AGDC President Frank Richards said, “These updates improve the competitive position of the Alaska LNG Project and its ability to deliver LNG and natural gas at favorable prices. We are incorporating these results into our discussions with potential partners as we work to transition to a new market-led project team and maximize project benefits for the State of Alaska. While today’s results strengthen the case for developing this project, it will ultimately be the market that determines the best path forward.”
AGDC obtained federal authorization to construct and operate the Alaska LNG project on May 21, 2020.
Click here to download a PDF of the full Press Release.
The Alaska Gasline Development Corporation (AGDC) is an independent, public corporation of the State of Alaska charged with maximizing the benefit of Alaska’s North Slope natural gas though the development of infrastructure to deliver gas to local and international markets. More information about Alaska LNG and the project permitting process can be found at Alaska-LNG.com. More information about AGDC is available at AGDC.us.
