DOE Moves Controversial Alaska LNG Project Forward

Published: May 12, 2023

By: Concentric Staff Writer

The U.S. Department of Energy (DOE) on April 26 reaffirmed a previous decision that moves forward the $40 billion Alaska LNG Project that would transport liquified natural gas from the North Slope of the state to global markets.

DOE’s Office of Fossil Energy and Carbon Management on May 1 published in the Federal Register a notice of an amended record of decision that amends and reaffirms a previous DOE order (Order 3642-A), originally issued in August 2020, allowing Alaska LNG to export domestically produced LNG to non-free-trade agreement countries under the Natural Gas Act. The order authorizes Alaska LNG to export product to non-free-trade agreement countries where export is not prohibited by U.S. law or policies.

Under DOE’s orders, Alaska LNG is authorized to export LNG in a volume equivalent to 929 billion cubic feet per year, or 2.55 Bcf/day, from the proposed Alaska LNG project that would be located in the Nikiski area of the Kenai Peninsula in Alaska. The new May 1 order reaffirms and maintains all obligations, rights, and responsibilities established in Order 3642-A. It also requires Alaska LNG to certify monthly to DOE that natural gas produced for export in the form of LNG in the prior month did not result in the venting of byproduct carbon dioxide into the atmosphere.

DOE had participated in a rehearing process through the preparation of a supplemental environmental impact statement (EIS) for the proposed project. DOE had worked as a cooperating agency with the Federal Energy Regulatory Commission (FERC) in preparing an EIS analyzing the potential environmental impact of the project.

The Alaska LNG project will export to global markets where demand for natural gas is growing, particularly in Asia. But the project faces heavy opposition from environmental groups that say it exacerbates climate change, will have negative impacts on wildlife and habitat, and affects indigenous peoples. It is also seen as an economic development boon for the state in terms of jobs, revenue, and access to lower-cost natural gas.

All views expressed by the author are solely the author’s current views and do not reflect the views of Concentric Energy Advisors, Inc., its affiliates, subsidiaries, or related companies. The author’s views are based upon information the author considers reliable at the time of publication. However, neither Concentric Energy Advisors, Inc., nor its affiliates, subsidiaries, and related companies warrant the information’s completeness or accuracy, and it should not be relied upon as such.

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