Alaska Gasoline Development Corporation (AGDC), the developer of the 20 Mt/year Alaska LNG project in Nikiski on the Kenai Peninsula (Alaska, United States), has revised the cost of the project by US$5.5bn, from the 2015 estimate of US$44.2bn to US$38.7bn (-12%). Alaska LNG Project cost reductions capitalize on technology (advancements in gas liquefaction technology, modular construction techniques, lower engineering costs) and process improvements.
The Alaska LNG project would consist of three 6.7 Mt/year liquefaction trains able to produce 20 Mt/year (27 bcm/year) of LNG and production could start as early as 2024, with full operations in 2026. It could later be expanded to 26.7 Mt/year (36 bcm/year or 3.5 bcf/d). In May 2020, the US Federal Energy Regulatory Commission (FERC) authorised the project to liquefy gas and export it. AGDC signed an agreement with BP and ExxonMobil to move ahead with the project in March 2019. The LNG plant would tap gas resources in the North Slope thanks to a 1,300 km long gas pipeline connecting the Prudhoe Bay gas treatment complex (North Slope) to the LNG project.
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