The permitting process is now complete for the ginormous, state-led, Alaska LNG Mega Project and North Slope Pipeline—and in record time at only three years. Upon completion, the 807-mile natural gas pipeline will flow supplies from Prudhoe Bay—which produces on average 3.5 BCFD of gas—to the proposed liquefaction and export terminal chillin’ southwest of Anchorage. The facility will be capable of exporting 20 MTPA. The state sponsor of the project—Alaska Gas Development Corp. (AGDC)—submitted its first estimate of $44.2 billion. But that quickly set hair on fire, and initial investors ExxonMobil, BP, and ConocoPhillips, citing depressed gas prices, folded in 2017. Then Alaska’s governor deemed the project too complex and risky for the state to develop on its own. AGDC subsequently announced it doesn’t plan to continue to own, or later operate, what is considered to be one of the largest, most costly LNG complexes in the world. The state sponsor returned to the table in June with a slashed budget of $38.7 billion, a new economics deck, and a search for partners to transition the project by January.
Alaska Gas Development Corporation
The Alaska Gasline Development Corporation (AGDC) is an independent, public corporation of the state of Alaska. AGDC’s roots date back to 2009, when declining Cook Inlet gas supplies raised the possibility of local energy brown outs and higher energy costs. In 2010, the Alaska Legislature passed House Bill 369, creating AGDC.