$45B Project: Alaska Plans 800 Mile LNG Pipeline

Pipeline Builders Letter to Alaska Gov Sean Parnell Feb 15, 2013

On October 1, 2012 we updated you on the progress ExxonMobil, ConocoPhillips, SP and TransCanada had made to advance North Slope natural gas development. At that time, we described our plans for progressing concept selection. Today, we are pleased to inform you we have completed the concept selection phase.

Attached is a summary of the major project components, including the gas pipeline, gas treatment facilities and the liquefaction, storage and terminal facilities. The project design also includes five off-take points along the pipeline route to ensure Alaskans access to a cleaner burning and dependable energy source. Capacity ranges reflect the expected seasonal variability. The conceptual design reflects the integrated teamwork of over 300 people on behalf of our companies.

Our companies are now working toward the next decision points. As outlined in our letter of October 1, 2012, a competitive, predictable and durable oil and gas fiscal environment will be required for a project of this unprecedented scale, complexity and cost, to compete in global energy markets.

A successful Alaska LNG project would result in thousands of jobs and the opportunity for decades of domestically-produced natural gas for homes and businesses in Alaska. We remain committed to responsibly developing the State's considerable resources and will keep you advised of our progress. We also have plans to update the Legislature at a Lunch and Learn on February 19.

Full Text: Proposed Alaska LNG Project Concept

Video: Alaska Legislators Briefed on LNG Pipeline

Pipeline Highlights:

• Diameter: 42"
• Design Rate: 3 - 3.5 billion cubic feet
• Length: -800 miles (primarily underground)
• LNG Capacity: 15 - 18 million tons per annum (MTA) 
• LNG Storage Tanks: 2 tanks @ 160,000 cubic meters per tank
• Terminal: 1 loading jetty with 2 berths
• Capital Investment Estimate: $45 - $65 USD-Billion