Alaska inches one step closer to Chinese investments in LNG project

The US state of Alaska is getting one step closer to Chinese investments in its ambitious energy program after US energy regulators began assessing a planned liquefied natural gas (LNG) project in the state.

The Federal Energy Regulatory Commission has set December 2019 as the deadline for the Alaskan LNG project to receive its final environmental impact statement, which Alaska Governor Bill Walker said has cleared a hurdle for investments in the project, local media reported Wednesday.

“This is a major step forward that establishes clarity and predictability in the federal permitting process, which is critical for investors,” governor Walker said in a statement.

The LNG project in the design phase in Alaska would connect a natural gas reservoir in Prudhoe Bay in northern Alaska through 1,280 kilometers of pipe with a liquefaction plant on the south-central Alaskan coast.

The project, upon completion, will have an annual design capacity of 100 billion cubic meters per day of natural gas.

Alaska has been aggressively seeking foreign funds for its energy program.

The US state signed an agreement with China Petrochemical Corporation last November on the latter’s purchase of its LNG resources.

Walker announced last week that he would lead a delegation of state trade representatives to China in May to deepen Alaska’s business ties with the world’s second largest economy.

Walker’s office said that China has been the top consumer of Alaskan goods since 2011.