Energy

Alaska says its planned LNG project will help Asia cut carbon emissions

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REUTERS/Rebecca Naden

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Oct 7 (Reuters) - Alaska Gasline Development Corp (AGDC) said on Thursday that its proposed liquefied natural gas (LNG) export project would reduce greenhouse gas emissions in Asia by allowing power generators to use a cleaner fuel than coal.

The state-owned liquefied natural gas (LNG) and pipeline developer released a study concluding that overall greenhouse gas emissions from Alaska LNG natural gas would be 50% less than burning Chinese regional coal, reducing carbon dioxide emissions by 77 million tonnes per year.

The study, produced by energy and environmental experts from EXP, SLR Consulting, and ALG (Ashworth Leininger Group), also showed that Alaska LNG had a lower greenhouse gas intensity than other LNG export projects on the U.S. Gulf Coast and Australia.

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"When you look at the environmental benefits achieved by completing our project, it strengthens our position," Frank Richards, president of AGDC, told Reuters.

AGDC is developing the $38.7 billion Alaska LNG project, which includes a liquefaction facility on the Kenai Peninsula in southern Alaska and a proposed 807-mile (1,299-kilometer) pipeline that would move gas currently stranded in northern Alaska across the state.

AGDC conducted the study after U.S. President Joe Biden told the Department of Energy to conduct a lifecycle analysis of greenhouse gas emissions in authorizations the agency made under the administration of former President Donald Trump.

Alaska LNG is one of several of North American LNG export projects that have for years been seeking customers to sign long-term contracts needed to finance construction of their multi-billion dollar projects.

AGDC is not looking to build Alaska LNG itself but work with parties that can build a gas treatment plant in northern Alaska, the pipeline and liquefaction facility.

Richards said AGDC has already lined up parties to lead the pipeline and gas treatment plant, and is still looking for a party to lead construction of the liquefaction plant.

To help the project move forward, the U.S. Congress has included loan guarantees worth $26 billion for the Alaska LNG project in the latest infrastructure bill.

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Reporting by Scott DiSavino; Editing by David Gregorio

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