US approves Alaska LNG for non-FTA exports

The US Department of Energy (DOE) has sanctioned the export of liquefied natural gas (LNG) from the Alaska LNG plant on the Kenai Peninsula to countries that do not have a free trade agreement with the US.

The decision will provide a global market for gas that has previously been trapped in a remote region without a link to consumers.

The DOE has approve the export of up to 2.55 Bcfd of gas for 30 years, or over 3% of US gas supply, the department said in a statement. The approval opens up natural gas on Alaska's North Slope to global markets, following a growing list of other projects already making moves in that direction.

The project, estimated to cost $45 B–$65 B, would include an 800-m pipeline to transport gas from Alaska's northern reaches down to Nikiski on the Kenai Peninsula where it would be liquefied for shipment overseas, likely to markets in Asia. The decision will provide an outlet for Alaskan gas stranded in a remote region without a link to consumer markets.

The lower 48 statets, once considered a potential market, has enough gas of its own after a rapid increase in shale gas drilling over the past decade.

Alaska LNG, being developed by a consortium including affiliates of ExxonMobil, ConocoPhillips and BP, is expected to take years to build and must still undergo an environmental review and a final investment decision.