Alaska LNG Tasks Worley with Engineering, Cost Breakdown

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--A proposed liquefied natural gas (LNG) export facility in Alaska could be moving closer to a final investment decision with Worley on board to help with engineering and cost assessments, developer Glenfarne Group (New York, New York) announced.

The Alaska Gasline Development Corporation (Anchorage, Alaska) in March offloaded its 75% stake in the Alaska LNG project to Glenfarne Alaska LNG, an affiliate of the Glenfarne Group, for undisclosed terms. Glenfarne, an industrial manager of energy and infrastructure assets, said Alaska LNG will consist of a roughly 800-mile natural gas pipeline running from the North Slope to Nikiski on Alaska's Kenai Peninsula.

On the North Slope, the company said it plans to deploy carbon-capture technology that would abate some 7 million tons of carbon dioxide annually.

On Tuesday, Glenfarne said it selected Worley (North Sydney, Australia) to take on engineering work and prepare a cost assessment that would help the company reach a final investment decision on the pipeline feeding the export terminal.

"Our specialist team is well placed to support Glenfarne in moving this vital project forward, improving energy security for Alaska and the world," said Mark Trueman, the president of operations in the Americas for Worley.

If built, Alaska LNG would have a peak liquefaction capacity of about 3.3 billion cubic feet per day, according to Industrial Info's GMI Database, which includes 18 separate projects affiliated with Alaska LNG worth a total investment value of $42.5 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.

Project planners submitted an export application in 2014 and it has been approved by the U.S. Federal Energy Regulatory Commission (FERC), but is not yet under construction.

After his predecessor balked on new LNG projects due to emission concerns, U.S. President Donald Trump has pursued new facilities with a sense of urgency. To meet presidential orders, Interior Secretary Doug Burgum said he would press for reopening parts of the National Petroleum Reserve in Alaska up to drillers, leasing out parts of the Arctic National Wildlife Refuge and advancing the Alaska LNG project.

A warming climate, however, creates problems for pipeline construction along the Alaskan tundra as the window for construction season gets shorter and shorter.

Progress for Alaska LNG comes amid a race of sorts to ship super-cooled gas from North America's western coast. Canadian oil and gas producer ARC Resources Limited (Calgary, British Columbia) is seeking permits for a gas processing plant in British Colombia that would supply Shell plc's (London, England) LNG liquefaction and export terminal slated for Kitimat.

Kitimat is also expected to host the Cedar LNG facility, part of a broader national effort to expand trade arteries outside North America. Bilateral ties with the United States soured with the return of Trump to the White House and Canadian leaders are seeking ways to tap markets in Asia. (Click here for related project reports on the Kitimat LNG projects.)

Despite its own oil and gas riches, the United States relies heavily on Canadian crude oil to feed its refineries and is a net importer of natural gas from its northern neighbor.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).