The Alaska Gasline Development Corporation (AGDC) today filed an application to obtain a Natural Gas Act Section 3 permit with the Federal Energy Regulatory Commission (FERC) for its Alaska LNG project.
FERC is the federal agency that authorizes siting, construction, and operation of liquefied natural gas (LNG) export projects, and will lead the National Environmental Protection Act (NEPA) review process. The agency will prepare an environmental impact statement (EIS) for the project as well as coordinate permit applications with other federal agencies. Advancing the project through the federal environmental process will reduce the permitting risk and provide surety to project investors, financiers, and customers. FERC will soon publish a schedule for the NEPA process in the federal register that outlines the time to develop a draft EIS (likely 12 months) and a final EIS (another 6 months). The outcome of this NEPA process will be a FERC order that authorizes AGDC to construct the Alaska LNG project.
The project is an integrated gas infrastructure development with three major components: a gas treatment plant located at Prudhoe Bay, an 800-mile pipeline to Southcentral Alaska with up to five offtakes for in-state use, and a natural gas liquefaction plant in Nikiski to produce liquefied natural gas (LNG) for export.
“Today’s FERC filing marks a major milestone in moving the Alaska LNG project forward,” said AGDC President Keith Meyer. “This is the culmination of over one million man hours invested in project engineering and design, more than 193,000 acres mapped, over 300 streams surveyed, thousands of boreholes drilled along the proposed route, and approximately 50,000 pages of material submitted to FERC.”
The project liberates 35 trillion cubic feet (TCF) of proven natural gas resources stranded on the North Slope. The project anticipates 9,000 to 12,000 jobs for design and construction plus approximately 700 to 1,000 jobs for long-term operations. The gas pipeline will provide Alaskans with access to lower-cost, clean energy for residential and industrial use. Additionally, the liquefaction plant will be authorized to process 20 million tons of LNG per year for export, which will provide revenue to the State of Alaska for generations.
With today’s filing, AGDC also filed major permit applications with four additional federal agencies, including the Pipeline and Hazardous Materials Safety Administration (PHMSA), Army Corps of Engineers, Bureau of Land Management, and National Marine Fisheries Service.
Today’s FERC filing is a strong indicator to Alaskans and potential LNG buyers and investors that the Alaska LNG project is moving forward.