Alaska Pipeline Company (APLC) has received conditional approval for a project to build an extension of its gas transmission pipe that would connect to a possible future liquefied natural gas (LNG) import terminal at Port MacKenzie in Alaska. The ~$57 million project known as the Port MacKenzie Expansion aims to offset an expected shortage of natural gas available to public utilities from current producers in the Cook Inlet, according to a Regulatory Commission of Alaska filing.The project received conditional approval in part because a Final Investment Decision (FID) hasn’t been made concerning LNG imports and APLC has identified different sites that may be used for the project. APLC still needs to get all other approvals and authorizations.
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Road to Alaska - Long-Dormant Alaska LNG Project Sees Renewed Interest After Support by Trump
President Trump’s flurry of executive orders upon returning to office included one titled “Unleashing Alaska’s Extraordinary Resource Potential,” which aims to see the realization of the long-dormant Alaska LNG project, a multibillion-dollar plan to bring natural gas several hundred miles from Alaska’s North Slope to Anchorage and Cook Inlet for eventual liquefaction and export. The president’s endorsement renewed interest in a project that has been on the drawing board for more than 30 years. In today’s RBN blog, we look at why there is renewed interest in the project, some of the hefty challenges it would need to overcome, and why many still see it as a long shot.
- Blog
Road to Alaska - Are Alaska LNG's Strengths Enough to Outweigh Its Costs, Construction Challenges?
The Trump administration is trying to breathe new life into the long-dormant Alaska LNG project, talking up its strengths and encouraging potential Asian customers and investors to consider it. But the project, a multibillion-dollar plan to pipe natural gas from Alaska’s North Slope to Anchorage and Cook Inlet for liquefaction and export, faces huge financial and administrative hurdles, plus the challenges of building it in Alaska’s rugged terrain and often-harsh climate. In today’s RBN blog, we’ll examine Alaska LNG’s competitive position and whether its reduced shipping costs, coupled with federal support, might be sufficient to outweigh the construction costs and other major obstacles the project faces.
- Blog
In the Year 2025 - The Dilemma Posed by Alaska North Slope's Stranded Gas
Every day, crude oil producers on Alaska’s North Slope re-inject nearly 7.8 Bcf of natural gas into their wells, enough gas to supply the entire U.S. West Coast—California, Oregon and Washington State. If only there were some way to monetize that gas supply, to move it to market. The problem is that there isn’t, at least in today’s gas/LNG market, which is characterized by ample supply and relatively low prices. This same market also favors infrastructure projects that are simple and low-cost; no one wants to make multibillion-dollar commitments when natural gas prices and margins are so low. Today we conclude our series on the tough times ahead for Alaska’s energy sector with a look at the state’s vast natural gas reserves and the challenges associated with tapping them.
