Welcome to the LNG Era: Projects around the world and how Alaska LNG stands up.

AuthorAnderson, Tasha

As of late March technical teams from BP and ExxonMobil were scheduled to meet with Alaska Gasline Development Corporation (ADGC) representatives in Houston for a cost reduction workshop as a tool to increase the viability of AK LNG moving forward. The discussions were anticipated to start April 2 and involve at least twenty-five individuals.

This followed a March 8 announcement that AGDC signed an agreement with BP and ExxonMobil to collaborate on various methods to advance the project and improve its competitiveness.

And the project has competition.

According to Global Gas & LNG Outlook to 2035 by McKmsey & Company, a global market intelligence and analytics group focused on the energy sector, "South Asian gas demand is expected to grow by approximately 2 percent per annum by 2022, spurring LNG [liquid natural gas] imports by 20 billion cubic meters," and over the next five years it's anticipated Europe will require approximately 45 billion additional cubic meters of gas imports.

According to Shell LNG Outlook 2019, "Projections to 2035 estimate that more than 70 percent of energy demand growth will be met by gas and renewables combined, with gas supplying more than 40 percent of the additional demand." The report continues to say, "LNG continues to be the fastest-growing supply source...We expect growth in LNG demand to continue around the world, led by Asia and Europe."

Demand for LNG will be met with new supplies of LNG, and AK LNG is only one of many prospective projects on the horizon taking advantage of the worldwide trend of producing and using renewable and cleaner energy sources.

LNG Canada

Just a little south and east of Southeast Alaska, LNG Canada, estimated to cost $31 billion, is currently under construction and is anticipated to begin supplying LNG before 2025. Project owners Shell (40 percent), PETRONAS (25 percent), PetroChina (15 percent), Mitsubishi Corporation (15 percent), and Kogas (5 percent) made the final investment decision to develop LNG Canada in October 2018.

LNG Canada CEO Andy Calitz said, "The final investment decision taken by our joint venture participants shows that British Columbia and Canada, working with First Nations and local communities, can deliver competitive energy projects. This decision showcases how industrial development can co-exist with environmental stewardship and indigenous reconciliation,"

LNG Canada is a LNG processing facility located in Kitimat, British Columbia, that will initially have two LNG trains (a natural gas plant's liquefaction and purification facility, which is typically comprised of a compression area, propane condenser area, methane, and ethane areas) with the capacity to produce 14 million tonnes per annum (MTPA) of LNG.

In addition to building the LNG plant, construction includes redesigning an existing wharf at Kitimat to accommodate up to two LNG carriers at once and building a rail yard within the facility that will be connected to an existing rail system.

LNG Canada has contracted with TransCanada to build, own, and operate the 670-kilometer (415-mile), $4.6 billion Coastal GasLink pipeline to transport natural gas from the Montney basin, located northeast of Kitimat in British Columbia and Alberta...

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