Alaska LNG developer in ammonia pact with Japanese firms

Alaska Gasline Development Corporation, the state-owned developer of the Alaska LNG export project, is joining forces with Japan’s Mitsubishi and Toyo Engineering as well as Hilcorp Alaska to look into producing ammonia in the Cook Inlet region.

In that regard, the four firms have signed a memorandum of understanding to evaluate the commercial feasibility of utilizing North Slope natural gas delivered to Southcentral Alaska via the Alaska LNG project to produce “carbon-free” ammonia, according to a statement by AGDC.

The project would capture and sequester the carbon dioxide generated from this process in secure underground geologic formations, AGDC said.

This assessment project would further define Cook Inlet’s sequestration potential and the
economics for producing clean ammonia alongside LNG in Alaska, it said.

AGDC noted in the statement that ammonia is “central” to the zero-carbon energy strategies of nations across the Pacific Rim, including goals by Japan and Korea to become carbon neutral by 2050.

Japan plans to grow ammonia use in energy production to three million tons per year by 2030, up from zero today.

Cost advantage

In addition to Cook Inlet’s carbon sequestration capabilities, the parties factored other unique Alaska advantages into the decision to initiate the ammonia assessment, according to AGDC.

Round-trip tanker transport from Alaska to key Asian markets is more than 12,000 miles shorter than from the US Gulf Coast, reducing costs and shipping emissions, it said.

Also, Alaska delivered a 45-year record of success exporting LNG to Asia, AGDC said.

AGDC is developing the $38.7 billion Alaska LNG project. The firm secured an approval from the US FERC back in May 2020 to contract the project but it has not taken a final investment decision.

If developed, the project would consist of liquefaction facilities designed to produce up to 20 mtpa and pipeline capable of transporting up to 3.9 bcf of gas per day to the plant.

Most Popular

LNG carrier arrives to load first LNG Canada cargo

The 174,000-cbm GasLog Glasgow has arrived at the LNG Canada jetty in Kitimat to load the first LNG cargo produced at the Shell-led terminal, an LNG Canada spokesperson told LNG Prime on Saturday.

HD Hyundai Samho scores contract to build LNG carrier quartet

South Korea’s HD Hyundai Samho has secured an order to build four liquefied natural gas (LNG) carriers for about $1.03 billion.

BP seals LNG SPA with Italy’s A2A

UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with Italian electricity and gas distributor A2A.

More News Like This

Thailand’s PTT, Glenfarne ink Alaska LNG cooperation deal

US energy firm Glenfarne has signed a cooperation agreement with Thailand's PTT for participation in the Alaska LNG project, including PTT's purchase of LNG over a 20-year term.

Glenfarne says more than 50 firms interested in Alaska LNG project

US energy firm Glenfarne said that over 50 firms have formally expressed interest in the Alaska LNG project, with a contract value exceeding $115 billion.

Glenfarne taps Worley for Alaska LNG pipeline gig

US energy firm Glenfarne has selected Australian engineering firm Worley to undertake additional engineering and prepare a final cost estimate for the Alaska LNG pipeline as it looks to achieve a final investment decision on the project.

Thailand in Alaska LNG talks

Thailand's PTT and Egco will engage in further discussions to potentially participate in the development and buy volumes from the planned Alaska LNG project, according to Thailand's Ministry of Energy.