Trump Admin Forges Ahead With Alaska Energy Plans

The Trump administration is moving forward with its energy dominance plans, focusing on Alaska and its oil and gas potential by opening up more of the National Petroleum Reserve and removing restrictions on LNG infrastructure.

As much as 82% of the National Petroleum Reserve will be opened to exploration, Interior Secretary Dan Burgum said, as quoted by Reuters, along with the Coastal Plain of the Arctic National Wildlife Refuge that the previous administration sought to exclude from such activities.

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A special focus would be placed in liquefied natural gas, with the federal government removing all obstacles to the building and operation of relevant infrastructure, such as revoking land use restrictions along the route of the Trans-Alaska Pipeline Corridor and the Alaska Liquefied Natural Gas Pipeline project, the publication reported.

The Alaska LNG project is designed to move 3.5 billion cubic feet per day from the North Slope down an 800-mile pipeline to an LNG terminal, and from there to U.S. allies across the Pacific. Earlier this month, Alaska state officials were reported to have plans to visit South Korea and Japan to sound out interest in Alaskan LNG with a view to potential investment. The project has an estimated price tag of $44 billion.

One importer has already made an investment commitment for the project: Taiwan’s state oil and gas company CPC Corporation earlier this week signed a letter of intent to provide part of the investment for the project and become a buyer of the gas once production begins. According to Alaska governor Mike Dunleavy exports of liquefied gas could begin as soon as 2030.

“It’s time for the U.S. to embrace Alaska’s abundant and largely untapped resources as a pathway to prosperity for the Nation, including Alaskans,” Secretary Burgum said this week. Energy companies, however, are likely to be reluctant to expand in Alaska on fears that the next administration may once again impose restrictions on drilling in the state.

By Irina Slav for Oilprice.com

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