In a moment of victory for the U.S. oil and gas industry locked in a battle of wills with government powers, the ConocoPhillips Willow project in Alaska has finally been approved, albeit begrudgingly. The Administration, in return, has posted a Dead End sign for leases in the Arctic Ocean. But Willow pales in comparison to the next major fossil fuels endeavor ahead in the Land of the Midnight Sun, which was quietly government-stamped early last month.
Reese Energy Consulting today is studying the massive Alaska LNG Project headed up by state-owned AGDC (Alaska Gasline Development Corp.). Coming in at an estimated $40 billion, Alaska LNG offers the nation’s largest state huge opportunities to gather, transport, process, and liquefy as much as 3.5 BCFD of natural gas from the North Slope, as well as export a large portion of LNG to Asian markets. The project will bisect Alaska from north to south and include a gas treatment plant, two pipelines to connect produced gas to the plant, eight compressor stations, a heater station, export terminal, and a granddaddy 807-mile main pipeline from the North Slope to the liquefaction facilities in Southcentral Alaska. Coming in seven miles longer than the Trans-Alaska crude oil pipeline, the AGDC line will be buried mostly underground.