FERC Releases Status Update for Alaska LNG Project; Alaska Governor Identifies Issues Needing Resolution

FERC has released an update on the status of its environmental review of the proposed Alaska LNG Project consisting of an 800-mile pipeline to access North Slope gas supplies and liquefaction facilities and an LNG export terminal to be located near Nikiski in southeastern Alaska.  FERC currently is considering and will hold public meetings with stakeholders in October and November on the proposed scope of the environmental impact statement it will prepare for the project.  Alaska LNG is expected to file a formal application for the project in September.  Alaska Gasline Development Corporation, BP Alaska LNG, LLC, Conoco Phillips Alaska LNG Company, ExxonMobil Alaska LNG, LLC, and TransCanada Alaska Midstream, LP are the sponsors of the Alaska LNG Project.

Separately, Alaska Governor Bill Walker has identified several “significant issues” that must be settled before he calls a special legislative session to approve the Alaska LNG project agreements.  Among the issues are remaining to be resolved are a gas balancing agreement among the producers, a “withdrawn partner” agreement in the event a sponsor withdraws from the project, and various fiscal terms.  Read more in the Peninsula Clarion article.