Skip to main content

Two controversial US natural gas projects move forward

A US appeals court has dismissed a lawsuit filed by environmental groups challenging the federal approvals necessary for the construction of the Alaska LNG project. The court ruled that the US Federal Energy Regulatory Commission (FERC)'s review of the project satisfied environmental requirements and complied with relevant laws. In April 2023, the US Department of Energy authorised the project to export LNG. The Alaska Gasline Development Corporation (AGDC), a public corporation of the State of Alaska, is developing the project.

With an estimated cost of US$39bn, the project includes the construction of a 20 Mt/year (27 bcm/year) LNG plant, storage and shipping terminal, an 807-mile (1,287 km) long pipeline connecting the North Slope to the LNG plant, and a gas treatment plant. The pipeline, bisecting Alaska from north to south, is projected to have a capacity to transport up to 3.3 bcf/d (34 bcm/year) of natural gas.

In addition, the US Department of Agriculture's Forest Service has granted a permit for the 2 bcf/d (20.6 bcm/year) Mountain Valley natural gas pipeline, allowing it to run through the Jefferson National Forest in Virginia and West Virginia. The US$6.6bn project , proposed by Equitrans Midstream, is a proposed 303.5-mile (488 km) interstate natural gas pipeline that aims to unlock gas supplies from Marcellus and Utica shale production in Appalachia, the largest shale gas basin in the United States. The Mountain Valley Pipeline would cross nine West Virginia counties to transport natural gas to East Coast markets.

The project is still undergoing review and permitting by other entities, including West Virginia and the US Department of Interior. It initially received approval from the FERC in 2017. However, the project has faced setbacks due to regulatory obstacles and legal disputes, leading to delays in its completion. The pipeline’s construction is almost complete. The pipeline’s developers, which includes Equitrans Midstream (operator), NextEra Energy, Con Edison Transmission, WGL and RGC, have said they intend to bring the project into service in the second half of 2023.

World LNG database

Interested in LNG Databases?

World LNG Database offers a complete set of data on LNG markets. The service provides detailed information on existing and planned liquefaction and regasification plants. It also includes LNG shipping around the world, LNG contracts, time series on regasification and liquefaction capacities, LNG flows and LNG prices for all players in the market.

Request a free trial Contact us