Gov. Walker probes South Korean appetite for Alaskan LNG

Alaska’s governor Bill Walker discussed potential offtake, investment and partnership opportunities in Alaska’s LNG project, with South Korean government and company officials, during his recent visit to the Asian country.

Walker noted that, with South Korea importing at least US$10 billion worth of LNG each year, Alaska, that reinjects twice the amount of South Korea’s daily use of natural, the Asian country presents potential for Alaska to create additional revenue.

Currently, deliveries to South Korea are taking up to 25 days, a statement from the governor’s office reads.  Delivering Alaskan liquefied natural gas to South Korea would take about eight days, significantly reducing the delivery time.

Walker added that, during the meetings, the Alaskan delegation was “able to confirm that the Asian market will be looking for new sources to begin supplying LNG no later than 2023—which matches the Alaska LNG market delivery window.”

The Alaska Gasline Development Corp, owned by the state of Alaska, is currently in the process of assuming full management of the $45 billion-plus Alaska LNG project by the end of this year.

AGDC has already signed a memorandum of understanding with ConocoPhillips to market liquefied natural gas from the proposed Alaska LNG project through a joint venture company.

According to AGDC’s plans, FEED work could start in 2018 while the construction could begin in 2019.

The liquefaction and export facility of the Alaska LNG project will be built on the eastern shore of Cook Inlet on the Kenai Peninsula. The plant would receive gas via an 800-mile pipeline from the North Slope and is expected to be able to produce about 20 mtpa of LNG from three liquefaction trains.

LNG World News Staff