April 25, 2017

 

The Alaska Gasline Development Corp.'s LNG project application and accompanying resource reports are available online at the Kenai Peninsula Borough website. The state corporation filed its application with the Federal Energy Regulatory Commission on April 17, 2017. The more than 140 files include the latest project overview, proposed construction and operational plans, environmental reports and maps for the North Slope gas treatment plant, 807-mile pipeline through the center of the state and the natural gas liquefaction plant and LNG export terminal proposed in Nikiski.

 

Some of the files are large and download time will vary with your Internet connection speed.

 

The state of Alaska has taken over management of the project from North Slope oil and gas producers ExxonMobil, BP and ConocoPhillips, with the intent of proceeding to a construction decision by 2019 and first LNG exports in 2024. In addition to FERC’s preparation of an environmental impact statement and regulatory decision, that schedule is dependent on the state corporation’s success in signing up investors and customers, securing financing for the multibillion-dollar project, and favorable global LNG market conditions.

 

A few of the appendices to the reports (mostly data sheets) are too large to easily accommodate on the Kenai Borough server. All of the reports also are available from the FERC website at http://elibrary.ferc.gov/idmws/search/fercgensearch.asp. Enter CP17-178 for the docket number.

 

The reports and accompanying appendices available at the borough website are:

 

Natural Gas Act Section 3 Application

 

Alaska LNG Resource Report No. 1: General Project Description

The Appendix A file is too large to post

Alaska LNG RR1_AppxB_041417_public
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Alaska LNG RR1 Exhibit F Environmental Report Directory

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Alaska LNG Resource Report No. 2: Water Use and Quality, and Wastewater Discharge

Alaska LNG RR2 AppxA_041417_Public
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The Appendix D, F and G files are too large to post
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Alaska LNG Resource Report No. 3: Fish, Wildlife and Vegetation

The Appendix A, B and L files are too large to post

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Alaska LNG Resource Report No. 4: Cultural Resources

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Alaska LNG Resource Report No. 5: Socioeconomics

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Alaska LNG Resource Report No. 6: Geological Resources
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Alaska LNG Resource Report No. 7: Soils
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Alaska LNG Resource Report No. 8: Land Use, Recreation and Aesthetics

The Appendix A, B and C files are too large to post

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Alaska LNG_Resource Report No. 9: Air and Noise Quality

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Alaska LNG Resource Report No. 10: Project Alternatives

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Alaska LNG Resource Report No. 11: Reliability and Safety
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Alaska LNG_Resource Report No. 12: PCB Contamination

 

Alaska LNG Resource Report No. 13: Engineering and Design Material, Gas Treatment Plant
Alaska LNG Resource Report No. 13: Engineering and Design Material, LNG Plant

Alaska LNG RR 13_GTP_Appendices_041417_Public

 

Kenai Borough Mayor Mike Navarre presented at public meetings in Kenai, Seward and Homer on April 1, 5 and 6, 2017.  The town hall meeting focused on the state's fiscal problems and options for a healthy long-term fiscal future, including the issues of economic development and new revenues for public services.  The Mayor's presentation can be viewed here.

The borough is undertaking a comprehensive process to review, revise, and update the borough sales and property tax code. The following page contains links to the ordinances, memos, borough code, and backup material under consideration by the assembly. Please contact Larry Persily at 907-714-2158 with any requests regarding this content  

 

Assembly Sales and Property Tax Review Packet Contents

Energy Department approves Alaska LNG exports

 

By Larry Persily lpersily@kpb.us

May 29, 2015

 

(This update, provided by the Kenai Peninsula Borough mayor’s office, is part of an ongoing effort to help keep the public informed about the Alaska LNG project.)

 

Acknowledging that the Alaska LNG project is different from 32 other export applications on file, the U.S. Department of Energy May 28 granted conditional approval for liquefied natural gas exports from the proposed terminal at Nikiski, Alaska.

 

Approval for exports to nations lacking free-trade agreements with the United States — including major LNG buyers Japan, Taiwan, China, India and other Asian nations — is a big step for project developers looking to make sales calls on prospective customers. The Alaska LNG partners applied for export authority 10 months ago; some Lower 48 projects have been waiting three years for Energy Department approval.

 

Alaska LNG received approval for exports to free-trade nations in November 2014, but other than South Korea, none of the 20 nations on the U.S. free-trade list are significant LNG customers.

 

In granting conditional approval for sales to non-free-trade nations, the Energy Department said Alaska LNG is different from Lower 48 proposals because North Slope gas is stranded, unable to reach domestic or foreign markets. As such, exports of Alaska gas overseas would not diminish the amount available to Lower 48 consumers — a major consideration for the department in its review of proposed export projects on the U.S. Gulf, East and West coasts.

 

The department in August 2014 amended its procedures and stopped issuing such conditional approvals, instructing applicants that they needed to complete their full environmental review at the Federal Energy Regulatory Commission before a decision would be taken on their export application. That rule change did not apply to Alaska, which the department said it would consider separately.

 

In its May 28 order, the department noted the Alaska project “is substantially more capital-intensive and will require substantially greater expense toward environmental review than any project that has been proposed for the Lower 48.” As such, the regulatory certainty of export approval — even conditional approval — “will be of greater benefit” for the Alaska project, which the sponsors told the department could cost $1.5 billion for environmental and engineering work to reach FERC approval.

 

Energy Department approval of Alaska is conditioned on FERC completion and acceptance of an environmental impact statement for the project. The partners are working with federal regulators on gathering environmental and engineering data that will go into the EIS, with the project expected to file its formal application with FERC in late summer 2016.

 

Alaska LNG, under its current work schedule, hopes for a final EIS and FERC decision by fall 2018, putting the partners in a position to make a final investment decision on the $45 billion to $65 billion development. The sponsors include North Slope oil and gas producers ExxonMobil, BP and ConocoPhillips, along with the state of Alaska and pipeline partner TransCanada.

 

Construction could take four or five years, with first gas deliveries possible by 2024-2025.

 

The boom in U.S. shale gas production has sparked a push to build liquefaction plants to ship the fuel to overseas buyers. LNG export terminals are under construction in Texas (one), Louisiana (two) and one on Chesapeake Bay in Maryland. The department has granted export approval to an additional four projects, though each lacks either FERC approval to proceed or an investment commitment by project sponsors.

 

The Energy Department granted Alaska LNG’s request for 30 years of exports, at a maximum of 20 million metric tons per year — averaging 2.5 billion cubic feet per day of natural gas liquefied and loaded aboard specially designed ships to keep the LNG cold during the voyage overseas. At 30 years, the approval is 10 years longer than the department has granted most export applications.

 

Under federal law, natural gas exports are generally considered to be in the public interest unless challengers can prove otherwise or the department determines the public would be harmed. The only significant opposition to the Alaska LNG application came from the Sierra Club, which cited alleged environmental damages. The department dismissed the group’s objections.

 

Among the conditions imposed on Alaska LNG, the Energy Department required:

  • Project updates April 1 and Oct. 1 each year, including reports on the status of any long-term sales contracts.
  • Alaska LNG partners must file with the department any long-term sales contracts, though the companies may request confidentiality of proprietary information.
  • Department approval for any change in management control of the project.