ExxonMobil, BP, ConocoPhillips and TransCanada have begun summer field work as part of their activities associated with a staged pre-FEED (front end engineering design) for the Alaska South Central LNG (SC LNG) project. This summer field work will employ approximately 150 people.
Since the joint work began in March 2012, the companies expect to spend $80 - $100 million by year-end 2013. This builds upon more than $700 million in past work by the collective companies, including the joint Alaska Gas Producer Pipeline Team effort in 2001-02, the Denali Project and APP (including the State's contribution through AGIA). This commitment to summer field work and other activities will enable the companies to evaluate major future engineering commitments.
Towards this goal, a competitive, predictable and durable oil and gas fiscal environment will be required for a project of this unprecedented scale, complexity and cost to compete in global energy markets. The project companies have completed commercial agreements to support both the summer field work and other activities to further advance the project. The planned summer field work consists of studies to collect and analyze environmental and other scientific data required to support future regulatory filings that are key to the approval of this $45-65+ billion project. The study area will be along a potential pipeline route north of Livengood, a distance of approximately 400 miles. This work provides detailed knowledge of the route, including information on fisheries, stream hydrology, water resources, wetlands mapping and socioeconomic assessments to support potential permit applications.
“The summer field work is a key activity to support the project’s engineering, design and cost estimation work while also gathering data required for permitting the project,” said Steve Butt, senior project manager. “It is another significant step forward for the SC LNG project, further demonstrating the commitment and capabilities of the sponsor companies.”
The companies confirmed in a February 15, 2013 letter to Governor Parnell they had reached an important milestone in selecting a project concept that includes an 800-mile, 42-inch pipeline, up to eight compression stations, at least five take-off points for in-state gas delivery, a gas treatment plant located on the North Slope and a liquefaction plant in the south-central region. The teams are building on the agreed concept with technical work to prepare the project for more detailed engineering and design work, consistent with previously released plan phases.
The companies remain committed to working with the state to responsibly develop North Slope resources. A successful project could provide a host of economic benefits to Alaskans including state revenues, new job opportunities and access to decades of domestically-produced natural gas for homes and businesses in Alaska.