LNG Project Issues Updated $38.7 Billion Project Construction Price Tag

first_imgAGDC obtained federal authorization to construct and operate the Alaska LNG project on May 21. In a release from the AGDC, the updated estimate reflects a $5.5 billion (12.4%) cost reduction off the previous $44.2 billion cost estimate, which was compiled in 2015 by the project’s previous joint venture leaders, which included BP Alaska, ExxonMobil Alaska, ConocoPhillips and AGDC. FacebookTwitterEmailPrintFriendly分享The Alaska Gasline Development Corp. (AGDC) released an updated $38.7 billion cost estimate for the Alaska LNG Project, which will increase the project’s ability to deliver natural gas to Alaskans and LNG to export markets at competitive prices. The updated cost estimate was presented during Thursday’s AGDC board meeting. The $38.7 billion estimate was established during a rigorous, fourteen-month process incorporating significant third-party natural gas and LNG industry expertise. Along with AGDC staff, participants included representatives from BP, ExxonMobil, and Fluor Corporation, an international engineering, procurement, construction, and maintenance company.center_img 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. While the results strengthen the case for developing this project, it will ultimately be the market that determines the best path forward.” The cost estimate includes a North Slope gas treatment plant, an 800-mile pipeline, and an LNG plant in Nikiski, according to the AGDC.last_img

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