Energy project developers targeting Alaska’s North Slope and the Federal Energy Regulatory Commission (“FERC” or “Commission”) have agreed to commence the pre-filing review process of an 800-mile-long natural gas pipeline and liquefied natural gas (“LNG”) export-terminal. This is the first LNG export terminal proposed in Alaska in over sixty years. The origin of the anticipated pipeline is at the Point Thomson production field, located in northern Alaska along the coast of the Beaufort Sea. Approximately 3.5 billion cubic feet of natural gas per day (Bcf/d) is anticipated to travel from Point Thomson and it’s sister field Prudhoe Bay 800 miles south winding through the towns of Wiseman and Coldfoot and ending about 50 miles southeast of Anchorage in the town of Nikiski. The pipeline’s currently proposed route would supply gas to Alaskan citizens at five points along the way and conclude it’s journey at the LNG export terminal that has the potential to export 3.0 Bcf/d. The project, referred to as the “Alaska LNG Project” could cost up to $65 billion dollars and create 1,000 permanent jobs.
Natural gas turns to liquefied natural gas or LNG at the temperature of -260 degrees Fahrenheit. This cooling occurs at a liquefaction facility. LNG is used as a means to store and transport natural gas. A prospective LNG terminal project developer must comply with the FERC’s mandatory pre-filing procedures and review process. The pre-filing review process is initiated when project developers file a Letter of Intent to the FERC that discloses all materials identified in 18 C.F.R. § 157.21(d)(1-12)(20014), and a Preliminary Waterway Suitability Assessment (WSA) with the U.S. Coast Guard.
FERC requires that prospective applicants disclose a description of the schedule desired for the project including the expected application filing date and the desired date for Commission approval. Here the prospective applicants, which include: ExxonMobil Alaska LNG LLC, ConocoPhillips Alaska LNG Company, BP Alaska LNG LLC, TransCanada Alaska Midstream LP, and the Alaska Gasline Development Corporation, have disclosed a description of the schedule desired for the project. The applicants expect to file their project application pursuant to Section 3 of the Natural Gas Act (“NGA”), 15 U.S.C. § 717b (2006) by September 2016. Other anticipated dates include the issuance of a draft environmental impact statement (“EIS”) by October 2017, a final version of the EIS by March 2018, and a construction date somewhere between 2018 and 2019. Applicants hope the project to be in-service around 2024-2025 respectively. The project website may be viewed here.