Alaska LNG project reduces construction cost

Alaska Gasline Development Corp. (AGDC) has released an updated reduced cost estimate of US$38.7 billion for the Alaska LNG Project.

The updated estimate reflects a more than US$5 billion (12%) cost reduction off the previous US$44.2 billion cost estimate, which was compiled in 2015 by the project’s previous joint venture leaders, which included BP Alaska, ExxonMobil Alaska, ConocoPhillips, and AGDC. The new estimate will enhance the competitive price of LNG from the Alaska LNG Project versus similar projects vying to serve major Asian markets. Long-term LNG demand is forecast to exceed available supply as consumers seek the environmental benefits of LNG over other energy sources.

Alaska LNG Project cost reductions capitalize on technology and process improvements developed in the LNG industry over the past several years, reflecting the maturation of the LNG industry. These improvements include advancements in gas liquefaction technology and modular construction techniques, lower engineering costs, and a streamlined project management team.