The companies working on the Alaska LNG project are working hard to keep the project rolling through the next stage. In the summer of 2015, there will be continuing fieldwork as the project prepares for the Environmental Impact Study (EIS). The Federal Energy Regulatory Commission (FERC) will conduct one EIS for the project that will be accessible to all federal agencies. A 550-800 acre land acquisition is in the works to provide space for the liquefaction plant and marine terminal in Nikiski. The US Coast Guard is also working on the Cook Inlet Waterway Suitability Assessment that will be needed for the project to proceed. Community meetings are continuing at all levels of the project. FERC has opened a 9-month scoping period for the public to bring forward their concerns and questions about the project.
The Legislature and the Governor are locked in a battle over Alaska’s future for LNG. Governor Walker wants the Alaska Gasline Development Corporation (AGDC) to move forward on a project with a higher volume pipe, as an alternative to the AK LNG project. He states that it is good to have alternatives to make sure LNG is viable in Alaska. The Legislature wants to pursue only the AK LNG project and feels that splitting focus will create market confusion and instability in the Alaska oil and gas industry. Anchorage Chamber of Commerce Make it Monday Forum Presenter Larry Persily noted that he felt that AGDC was like a child in the middle of a highly contested divorce/custody battle. The internal battle between the Governor and the Legislature continues to cause frustration for many working on LNG in Alaska.
There are reasons that the AK LNG project could fall apart as well as reasons for optimism that it will continue and become a reality. The global demand for LNG could come up short, Alaska’s competitors could beat us on price, Russia could pull Asian markets to their product, and Alaska politics could get in the way of success for the project. However, there are still reasons to be optimistic moving forward. Alaska’s LNG has high BTU content, we have proven reserves with no exploration work needed, we are a proven supplier, and Alaska is the shortest distance to Asia from the other North American markets.
AK LNG will continue to move forward in their work and the Governor and the Legislature will continue their battle through the end of session next week and beyond. There will be many more discussions on this in the coming months and even years.
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