The Alaska LNG project has finally received the federal environmental impact statement for an 800-mile gasline from the North Slope to Nikiski.
After six years, the Federal Energy Regulatory Commission published the final EIS, which is a required analysis of the project’s environmental impacts and associated mitigation.
The EIS is a big step toward gaining federal approval required to construct and operate the project. FERC is scheduled to issue the final order for Alaska LNG in June for the project, which has been estimated to cost between $40-65 billion.
At current market prices, the gasline may not pencil out for the private sector, however.
Former Gov. Bill Walker had put the Chinese government and its associated financial institutions into the driver’s seat on the project with various signed agreements, all of which have been shelved by the Dunleavy Administration, which has returned to the “private sector first” model.
“The final EIS is a milestone in the Alaska LNG permitting process – a process still with significant hurdles,” said Gov. Mike Dunleavy.
“I appreciate the diligence of the AGDC team throughout this process. We look forward to reviewing the EIS and receiving the record of decision from FERC, at which point we will evaluate our next steps. FERC licensure is an important component in determining if Alaska LNG, which must be led by private enterprise, is competitive and economically advantageous for development.”
The project faces significant headwinds as bank after major bank has announced they will no longer be involved with projects involving oil and gas drilling in the Arctic. UBS, a Swiss bank, joined Wells Fargo, Goldman Sachs, and Chase Morgan in crossing Alaska’s oil and gas economy off of its list of future investments.
The Center for Biological Diversity issued a statement opposing the project, saying it would be bad for Alaska, polar bears, and whales.
More information about Alaska LNG, the EIS, and the permitting process for the project can be found at Alaska-LNG.com.