US DoE grants export authorisation for Alaska LNG Project

US Department of Energy (DoE) has granted conditional approval for export of liquefied natural gas (LNG) from the Alaska LNG plant on the Kenai Peninsula to countries which have not signed free trade agreement (FTA) with the US.

The approval enables the project to export LNG up to 2.55bn standard cubic feet per day (Bcf/d) from the site for a period of 30 years.

DOE said in a statement: "DOE/FE further finds that Alaska LNG’s proposed exports should be conditionally authorised at a volumetric rate not to exceed the capacity of the facilities to be used in the proposed export operations and subject to satisfactory completion of environmental review and other terms and conditions discussed in the order."

Under the Natural Gas Act in the US, LNG operators are required to obtain authorisation for gas exports to non FTA signatory countries.

The review conducted by DoE for this project revealed it to be consistent with public interest and economically beneficial for the country.

The approval opens up access for natural gas on Alaska’s North Slope to worldwide markets, following a growing list of other projects which are already seeking to explore overseas opportunities.

First of the overseas export from the plant is likely to start by early 2016.

The project has an estimated worth of $45bn to $65bn, reports Reuters.

It will include 800-mile transportation pipeline which will deliver gas from Alaska’s northern reaches down to Nikiski on the Kenai Peninsular.

The gas will then be transformed into liquefied form for exports to overseas markets including Asia.

The company will build a liquefaction plant in Nikiski to cool and condense the gas to 1/600th of its previous volume.

Alaska LNG Project is being implemented by ExxonMobil, BP, ConocoPhillips and TransCanada.