US DOE approves non-FTA exports from Alaska LNG

The US Department of Energy (DOE) has approved LNG exports to non-free trade agreement countries from Alaska Gasline Development Corp.’s (AGDC) 20-million tonne/year Alaska LNG plant, to be sited near Cook Inlet in Nikiski, Alas.

The move follows DOE’s Jan. 10, 2023, release of a final supplemental environmental impact statement (SEIS) for the project, which generally confirmed the conclusions of the draft SEIS. Among the findings noted by DOE in that document were that Alaska LNG’s shorter shipping routes to Asia would produce fewer emissions than US Gulf Coast-based alternatives, as would the fact that 75% of the natural gas used to feed the plant would be produced as associated gas.    

Natural gas would be supplied to Alaska LNG by an 800-mile, 3.5-bcfd pipeline from the North Slope. The project is expected to be operational by 2030.

Alaska Gov. Mike Dunleavy and US Ambassador to Japan Rahm Emanuel have been spearheading talks with Japan-based potential customers, touting US-sourced LNG as an alternative to supplies from the Russian Arctic.  

Sierra Club and other environmental groups have announced their intention to file suit against DOE’s decision. A 2020 permit issued by the Federal Energy Regulatory Commission has faced legal action since its issuance.

AGDC last year signed an MOU with Mitsubishi Corp., Toyo Engineering Corp., and Hilcorp Alaska LLC to assess the potential to produce zero-carbon ammonia at Cook Inlet using North Slope gas (OGJ Online, Oct. 7, 2022).