Qilak LNG Announces $5 Billion Investment in Proposed Alaskan LNG Facility

Alaska [US]: Qilak LNG is planning a huge investment of $5 billion to construct a liquefied natural gas (LNG) facility in Alaska's North Slope by the end of this decade. This move is being made with the aim of meeting the increasing demand for LNG in Asia, as revealed by the company's CEO.

Qilak, an Alaska-based LNG facility, has plans to be a major competitor to the Novatek-led Yamal project in the Russian Arctic for Asian customers. Qilak CEO and chairman Mead Treadwell stating that their project would ship LNG cargo twice as fast as cargoes delivered from the US Gulf Coast - 14 days compared to 28 days. This enhanced delivery speed would give them a valuable edge over their competition.

Treadwell stated: “This project could open up a whole new province of supply for LNG, Ammonia and Hydrogen, there are geopolitical advantages and diversifying Arctic gas supplies away from Russia is generally a well-received concept.”

Qilak LNG is considering a new project that would focus on liquefying natural gas. The project aims to have an annual production rate of four million tonnes, for an estimated cost of $1.6bn per one million tonnes - a lower rate compared to Yamal LNG, which currently has the capacity to produce 16.5 million tonnes of LNG annually.

Qilak LNG is teaming up with investment bank Lazard to secure financing for their proposed project. According to Treadwell, they are even offering an ownership stake in the project to Alaskan entities, including indigenous investment groups.

“We are speaking to potential investors inside and outside Japan, as well as firms that can help us reduce the carbon footprint of the project,” Treadwell added.

Nana Worley and Aker Arctic Technology are poised to take the lead on the feasibility study of a highly anticipated LNG project. It is slated for commissioning in 2030.

Treadwell added: “We are focusing on the northeast Asian market, there are countries beyond the north-east Asia who are considering involvement to step up their LNG purchases.

“If we stay on schedule, then the feasibility study would be done this year and with front-end engineering design in 2024.”