Feb 5 (Reuters) - Alaska wants to start on the first phase of the state’s liquefied natural gas (LNG) export plant and pipeline project by working with a private firm seeking to build a natural gas pipeline from the North Slope to Fairbanks.
The proposed $5.9 billion gas pipe would run roughly 500 miles (805 kilometers) from Prudhoe Bay to Fairbanks and could start delivering gas into central Alaska in 2025, according to a report Frank Richards, president of the Alaska Gasline Development Corp (AGDC), presented to the board on Thursday.
The report, which was supported by the board, said the companies would seek federal stimulus or infrastructure funding to help cover the cost of the first phase and attract outside investment.
Richards told local media the company would look for about 75% of the cost of the first phase to come from federal funds, according to an article in the Canadian Press.
The total $38.7 billion project includes an 807-mile (1,300-km) pipeline with the capacity to transport about 3.3 billion cubic feet per day from the North Slope to a liquefaction plant in Nikiski on the Kenai Peninsula.
The LNG export plant and pipeline project have been talked about for a long time. Alaska signed an agreement with major oil and gas companies to build the project in 2014, but the state ended up taking over the project in 2016 after the North Slope oil companies backed out.
Since then, AGDC received federal authorization to build the project in May 2020 and signed agreements with BP PLC and Exxon Mobil Corp to help advance its development.
BP and Exxon produce massive amounts of oil in Alaska and have discovered huge gas resources that are stranded in the North Slope. Alaska LNG would allow that gas to access markets around the world.
Reporting by Scott DiSavino;Editing by Elaine Hardcastle