State-owned Alaska Gasline Development Corp (AGDC) has obtained a key federal permit for its proposed $10bn Alaska Stand Alone Pipeline (ASAP) in the US.
The approval represents the project’s final major federal permit before the company can make a final investment decision (FID) on the natural gas pipeline project.
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The 733-mile ASAP is designed to deliver natural gas from the North Slope of Alaska to south-central Alaska.
AGDC received the permit from the US Army Corps of Engineers and the Bureau of Land Management (BLM) in a joint record of decision.
The pipeline is part of the company’s proposed Alaska integrated liquefied natural gas (LNG) project to be built in Nikiski on the Kenai Peninsula south of Anchorage with a total investment of $43.4bn.
The LNG project will access resources from The Prudhoe Bay and Point Thomson fields, which produce, on average, approximately 3.5bcf of gas a day. AGDC signed gas sales agreements with ExxonMobil and BP, which hold interests in the fields.
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By GlobalDataAGDC spokesman Tim Fitzpatrick was quoted by Reuters as saying: “We see Alaska Stand Alone as a backup plan. We are mostly focused on Alaska LNG.
“We are moving forward on Alaska LNG, focusing on permitting and commercial progress while we conduct a review of the project to assess its economic potential.”
Fitzpatrick said that the Alaska LNG and the ASAP projects share a common path for 80% of their pipeline routes.
The Alaska LNG project development will include the construction of an LNG plant, storage and shipping terminal and an 800-mile pipeline from the North Slope to the LNG facility. The project will also comprise a gas treatment plant.
The news agency report stated that US energy regulators have revised the expected schedule to decide on the LNG project to June 2020 from February 2020 earlier.
According to the new schedule, the US Federal Energy Regulatory Commission (FERC) is expected to issue a draft environmental impact statement (EIS) in June followed by a final EIS in March 2020.
AGDC originally planned to make an FID on the LNG project in early 2020 in an effort to bring it on stream in 2025.
