The US Department of the Interior (DOI) has approved the rights-of-way permits for the Alaska Gasline Development Corporation’s (AGDC) $38.7bn Alaska LNG Pipeline Project.

The Alaska LNG is an integrated project, involving development of a 20 million tonnes per annum (MTPA) liquefaction facility at Nikiski, Kenai Peninsula, Alaska, US.

It also includes the construction of approximately 807-mile-long pipeline capable of transporting up to 3.9 billion cubic feet of gas per day to the liquefaction facilities.

Additionally, the project involves the construction of a gas treatment plant in the Prudhoe Bay; and two additional natural gas pipelines connecting production units to the gas treatment plant.

The project secured the new permits across federal lands managed by the Bureau of Land Management (BLM) and National Park Service (NPS).

In a statement, DOI said: “These decisions, which adopt the Federal Energy Regulatory Commission’s (FERC) environmental impact statement (EIS), establish the environmental protections for wetlands, wildlife, recreation access and other resources that will govern access for a liquified natural gas pipeline; a major step in the permit process for the project.”

Alaska LNG project to create up to 15,000 jobs during construction phase

The project is expected to create up to 15,000 jobs during the initial construction and design phases and additional 1,000 jobs once operational.

Subject to securing permits, AGDC plans to construct and operate the Alaska LNG project to transport natural gas for export to foreign markets and provide for in-state gas deliveries.

Land and Minerals Management principal deputy assistant secretary Casey Hammond said:  “This project will enable more Alaska-produced energy to enter the market through modern, efficient technology and create opportunities for Americans.”

In June 2020, AGDC has reduced the cost estimate for the Alaska LNG Project by 12% of $5.5bn to $38.7bn from the previous estimate of $44.2bn.