Newsroom

2020 Press Releases

ALASKA LNG PROJECT ANNOUNCES UPDATED $38.7 BILLION PROJECT CONSTRUCTION COST

$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.

FERC APPROVES ALASKA LNG

The Alaska Gasline Development Corporation (AGDC) issued the following statement regarding today’s Federal Energy Regulatory Commission (FERC) authorization to construct and
operate the Alaska LNG Project.

Alaska Governor Mike Dunleavy said, “Today’s federal authorization is a key step in determining if Alaska LNG is competitive and economically beneficial for Alaska. I commend the AGDC team for their diligence. The ongoing project economic review and discussions with potential partners will determine the next steps for this project.”

Alaska’s Congressional Delegation, Sen. Lisa Murkowski, Sen. Dan Sullivan and Rep. Don Young, added, “We commend the continued work by both FERC and AGDC to advance the Alaska LNG project to this key point. The certificate issued today by FERC is the culmination of years of work and will be a major asset for both investment in Alaska and our nation’s long-term energy security. Development of our vast natural gas resources will further expand North Slope opportunities and could be a game-changer for our state economy.”

AGDC President Frank Richards said, “FERC’s authorization validates that the Alaska LNG Project can be safely built and operated, delivering numerous potential benefits with manageable environmental impacts. This approval, a major milestone in the development of the project, signifies the completion of a rigorous and comprehensive evaluation that has engaged environmental and energy experts at dozens of federal and state regulatory agencies.

“Obtaining FERC approval significantly de-risks the project execution with defined environmental stipulations. Our momentum continues as we complete our assessment of the project’s economics and competitiveness, and engage with potential project partners to determine the best path forward for the Alaska LNG Project.

“The Alaska LNG Project presents an opportunity to unlock significant benefits from Alaska’s stranded North Slope natural gas, including a new reliable and affordable clean energy source, the creation of a substantial number of high-paying construction and operations jobs for Alaskans, and long-term U.S. energy security.

“A special thank you to Governor Mike Dunleavy, our Congressional Delegation, the Alaska Legislature, and BP Alaska and ExxonMobil, who have provided instrumental support, expertise, and funding to advance our progress.”

The Alaska LNG Project consists of a Gas Treatment Plant on Alaska’s North Slope, an 800-mile pipeline, and an LNG facility in Nikiski, Alaska. Today’s FERC announcement culminates six years of public input, engineering, science-based environmental research, and cultural resource studies incorporating more than 150,000 pages of environmental, engineering, and cultural data.

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.

ALASKA LNG PROJECT RECEIVES MAJOR PERMIT

Today the U.S. Department of Transportation, Pipeline and Hazardous Materials Safety Administration (PHMSA), granted the Alaska Gasline Development Corporation a Special Permit for Pipe-in-Pipe. As requested by PHMSA, a copy of the permit along with the Special Permit Analysis and Findings were transmitted to the Federal Energy Regulatory Commission.

ALASKA LNG PROJECT ACHIEVES MAJOR PERMITTING MILESTONE

Today the Federal Energy Regulatory Commission (FERC) published the final Environmental Impact Statement (EIS) for the Alaska LNG project. The EIS analyzes the project’s environmental impacts and associated mitigation measures. The EIS is a mandatory step towards gaining the principal federal approval, or final order, required to construct and operate the project. FERC is scheduled to issue the final order for Alaska LNG in June 2020.

Alaska Governor Mike Dunleavy stated, “The final EIS is a milestone in the Alaska LNG permitting process – a process still with significant hurdles. I appreciate the diligence of the AGDC team throughout this process. We look forward to reviewing the EIS and receiving the record of decision from FERC, at which point we will evaluate our next steps. FERC licensure is an important component in determining if Alaska LNG, which must be led by private enterprise, is competitive and economically advantageous for development.”

“This EIS represents substantial progress in the approval process for Alaska LNG,” said AGDC President Frank Richards. “The EIS reflects six years of public input, engineering, science-based environmental research, and cultural resource studies. The EIS assesses more than 150,000 pages of data and makes Alaska LNG one of the most scrutinized energy infrastructure projects in Alaska. Such a rigorous, comprehensive environmental analysis provides assurance that the merits and impacts of Alaska LNG have been carefully vetted by numerous federal regulatory authorities.

“ExxonMobil and BP have contributed valuable expertise and financial assistance which helped make this accomplishment possible. Both organizations continue to provide critical support in the effort to progress Alaska LNG.

“In the coming days we will review the conclusions in the EIS, examine any differences with the draft EIS published last year, and use these conclusions to help inform decisions about the next steps for Alaska LNG.”

More information about Alaska LNG, the EIS, and the permitting process for the project can be found at Alaska-LNG.com.

Click here to download a PDF of the full Press Release.

AGDC BOARD OF DIRECTORS NAMES FRANK RICHARDS AGDC PRESIDENT

Today the Alaska Gasline Development Corporation (AGDC) Board of Directors named Frank Richards as the new AGDC president, effective March 1, 2020.

Richards succeeds Joe Dubler, whose retirement was announced during last week’s AGDC board meeting. Dubler will provide transition support to Richards over the next 60 days to ensure continued successful execution of AGDC’s work on the Alaska LNG project.

AGDC Board Chairman Doug Smith said, “AGDC is fortunate to have someone of Frank’s caliber who is deeply familiar with Alaska LNG ready to take the helm. The Board thanks Joe for his service and leadership. Under Joe, Frank, and the AGDC team we have made tremendous strides towards realizing Alaska’s natural gas potential, and I’m confident that progress will continue as Alaska LNG advances through the permitting process.”

Richards currently serves as AGDC senior vice president of program management, responsible for the development and execution of the Alaska LNG project. A registered professional engineer, Richards joined AGDC in April 2012. He has contributed to the development of numerous large-scale infrastructure projects across Alaska, including the Red Dog Mine, the Bradley Lake hydroelectric project, and offshore North Slope oilfield development projects. He previously served as deputy federal coordinator for Alaska natural gas transportation projects and holds a Bachelor of Science in civil engineering from the University of Maine.

Dubler has served as AGDC president since January 2019 and held other senior AGDC leadership positions between 2010 and 2016, including serving as vice president of commercial operations and chief financial officer.

Click here to download a PDF of the full Press Release.

2019 Press Releases

STATEMENT ON DRAFT ENVIRONMENTAL REVIEW

Alaska Gasline Development Corporation (AGDC) Interim President Joe Dubler issued the following comment after publication of the Federal Energy Regulatory Commission (FERC) draft Environmental Impact Statement (EIS) for the proposed Alaska LNG project:

“Alaska LNG holds the potential for significant environmental, energy, economic, and employment benefits for Alaskans. Publication of the draft Environmental Impact Statement represents substantial progress toward obtaining the authorization required to build and operate this project.

“We will now begin to thoroughly examine this comprehensive document to understand the commission’s recommendations. The ongoing permitting process incorporates 150,000 pages of data and should give Alaskans confidence that the project’s merits and impacts are being rigorously scrutinized.”

The draft EIS may be viewed and downloaded from FERC’s website (https://www.ferc.gov/industries/gas/enviro/eis/2019/06-28-19-DEIS.asp).

Click here to download a PDF of the full statement.

ALASKA LNG COLLABORATION AGREEMENT WITH BP & EXXONMOBIL

The Alaska Gasline Development Corporation (AGDC) has signed an agreement with BP and ExxonMobil to collaborate on ways to advance the Alaska LNG project by working together to identify ways to improve the project’s competitiveness, and progress the Federal Energy Regulatory Commission authorization to construct the project.

AGDC Interim President Joe Dubler said, “Our respective organizations share an interest in the successful commercialization of Alaska’s stranded North Slope natural gas. BP and ExxonMobil possess world-class LNG expertise which may help AGDC responsibly advance this project with maximum efficiency for the benefit of Alaskans, and I welcome their collaboration.”

Click here to download a PDF of the full press release.

AGDC DIRECTORS ELECTS NEW LEADERSHIP, APPOINTS AGDC VETERAN JOE DUBLER AS INTERIM PRESIDENT

At today’s regularly scheduled Alaska Gasline Development Corporation (AGDC) Board of Directors’ meeting, the board elected new leadership, selecting Doug Smith as board chair, Dan Coffey as vice chair, and Warren Christian as secretary and treasurer.

The board also named Joe Dubler as interim president, effective immediately. Mr. Dubler held senior AGDC leadership positions between 2010 and 2016, including serving as vice president of commercial operations and chief financial officer. Most recently, Mr. Dubler has served as executive vice president of finance and administration for Cook Inlet Housing Authority and will begin his new position on a full-time basis in mid-February after a transition period.

Mr. Dubler replaces outgoing AGDC President Keith Meyer.

AGDC Board Chair Doug Smith said, “Joe has the right experience to advance AGDC’s mission of commercializing Alaska’s vast but stranded North Slope gas supply for the benefit of all Alaskans, including access to affordable, cleaner, reliable energy and new revenue to fuel Alaska’s future.”

Click here to download a PDF of the full press release.