U.S. energy regulators on Thursday approved construction and operation of Alaska Gasline Development Corp’s proposed $43.4 billion LNG export project.
The Federal Energy Regulatory Commission granted a Section 3 Natural Gas Act authorization, with conditions, to the Alaska state-owned AGDC.
The LNG project will consist of liquefaction facilities on the Kenai Peninsula designed to produce up to 20 mtpa.
It also includes a 807-mile-long pipeline capable of transporting up to 3.9 bcf of gas per day to the plant.
“Today’s federal authorization is a key step in determining if Alaska LNG is competitive and economically beneficial for Alaska,” Alaska Governor Mike Dunleavy said in a statement.
“The ongoing project economic review and discussions with potential partners will determine the next steps for this project,” he added.
AGDC has previously signed deals with energy giants BP and ExxonMobil to help advance the LNG export project’s development.
The two energy giants have discovered huge gas resources in the North Slope which would feed the planned LNG facility.