The Alaska LNG Project is one of nearly two dozen liquefied natural gas export terminals nationwide that are waiting on approval from the Federal Energy Regulatory Commission.
Larry Persily, oil and gas special assistant to the Kenai Peninsula Borough mayor, detailed what the large amount of applications mean for the proposed Nikiski project.
Persily: “We’re facing competition in the marketplace to put together an LNG project that’s economically competitive that buyers will want to sign contracts for the LNG but we’re not really in competition at the federal regulatory level.”
Persily says nationwide developers are facing tough decisions with the current global oversupply of LNG that is driving prices down.
Persily: “The Alaska LNG Project would not deliver its first cargo to Asia until 2025 so that is an inherent risk in the business: you have to look ahead but you have to make decisions today. So today’s low prices certainly worry you if you think they are going to last forever but if you believe the market is going to pick up, then you still want to make investment decisions so you are ready ten years from now to profit when the market is there.”
The Alaska LNG partners aim to submit the full project application to FERC by the third quarter of 2016.
FERC representatives will hold a meeting about the Alaska LNG Project at 6 pm on October 27 at the Nikiski Recreation Center.