Alaska Gasline Development (AGDC) has announced a revised cost estimate for the Alaska LNG project, reducing the previous estimate by $5.5bn.
AGDC now puts the cost estimate for the LNG project at $38.7bn, down 12.4% from the earlier figure.
In 2015, the project’s previous joint venture companies, which included BP Alaska, ExxonMobil Alaska, ConocoPhillips and AGDC, had estimated the Alaska LNG project to cost $44.2bn.
The updated cost estimate is expected to increase the project’s ability to deliver natural gas to Alaskans and LNG to export markets at competitive prices.
The new project cost was prepared following a fourteen-month process incorporating significant third-party natural gas and LNG industry expertise.
AGDC President Frank Richards said, “These updates improve the competitive position of the Alaska LNG Project and its ability to deliver LNG and natural gas at favorable prices.
“We are incorporating these results into our discussions with potential partners as we work to transition to a new market-led project team and maximize project benefits for the State of Alaska.”
Alaska LNG project received FERC authorization in May
Considered as one of the world’s biggest natural gas projects, the Alaska LNG project will consists of a gas treatment plant on Alaska’s North Slope, an 800-mile pipeline, and an LNG facility in Nikiski, Alaska.
The gas treatment plant will be used to remove impurities from the gas before it is delivered through the pipeline.
The pipeline will transport the natural gas from North Slope to Southcentral Alaska for exports.
The Nikiski LNG facility will be used to cool and condensate the gas for safe transportation.
In May, the US Federal Energy Regulatory Commission (FERC) gave its authorization to construct and operate the Alaska LNG Project.