Alaskan LNG project set to deliver by 2030

Qilak LNG has announced plans to build a USD 5-billion LNG facility in Alaska, Reuters reported on Wednesday.

The proposed asset will be built on Alaska’s North Slope and produce 4 million tonnes of LNG per year, which is 1% of global LNG demand.

It will utilise offshore gravity-based structures to produce gas and deliver LNG to Asia using three to five Arc7-type LNG carriers capable of travelling Arctic waters.

Feasibility studies are expected to begin in 2023, and FEED works in 2024. The FID is expected to take place in 2025.

The facility is expected to come on line in 2030.

The company is working with financial services company Lazard to attract investment and will offer ownership to Alaskan entities including indigenous groups.

According to Qilak LNG’s CEO and Chairman Mead Treadwell, LNG shipments from the asset will arrive in Asia in 14 days, lowering costs from its competitor Yamal LNG in Russia.

“This project could open up a whole new province of supply for LNG, ammonia and hydrogen,” said Treadwell. “There are geopolitical advantages and diversifying Arctic gas supplies away from Russia is generally a well-received concept.”

The project is targeting major LNG importers such as Japan, South Korea and Taiwan.