The US government has approved the Alaska LNG project to export to countries that do not have a free trade agreement with the nation. The project is yet to be examined for long-term viability and has no final decision on investment yet. The project is estimated at USD 39 billion.
The US Department of Energy has given its nod to the Alaska Gasline Development Corp (AGDC) to export the project’s LNG to countries, majorly Asian, that have no free trade agreement (FTA) with the US yet. The long-term viability of the nearly USD 39 billion project is yet to be determined. The final investment decision is pending as well, however, the project is expected to become operational by 2030.
The project includes the construction of a liquefaction facility on the Kenai Peninsula, South Alaska, and a proposed 807-mile (1,300-km) pipeline to transport gas stranded in northern Alaska across the state. The Federal Energy Regulatory Commission (FERC) an independent agency that regulates Alaska LNG’s siting, construction, and operation approved the US project in 2020.
Frank Richards, President of AGDC, said that the company will review the approval, which will provide Alaskans and U.S. allies with a significant source of low-emissions, responsibly produced energy consistent with international environmental priorities.
The US government had recently, last month, approved the ConocoPhillips USD 7 billion Willow oil and gas drilling project on Alaska’s North Slope.