Page 6 - NorthAmOil Week 11 2023

NorthAmOil COMMENTARY NorthAmOil

Qilak LNG plans $5bn

LNG facility in Alaska

Qilak LNG is proceeding with a 4mn tpy LNG export

plant on Alaska’s North Slope, aimed at targeting

Asian demand

ALASKA QILAK LNG has revealed it is seeking to build a Qilak, since Alaskan terminals can ship an LNG
4mn tonne per year (tpy) LNG export terminal cargo to Asia in a fortnight, which is about twice
WHAT: in Alaska’s North Slope, to be completed by the as fact as a delivery could be made from the US
The proposed 4mn tpy end of the decade. The announcement from the Gulf Coast.
facility would be closer to company’s chief executive comes as large LNG Also adding to the attractiveness of the pro-
Asian markets than key importers in East Asia look to wean themselves posed project is its ability to be used as well for
competitor Yamal LNG in off Russian gas following its invasion of Ukraine. shipping low-carbon fuels such as ammonia and
the Russian Arctic. Qilak is a subsidiary of Dubai-headquartered hydrogen, which is particularly enticing for East
Lloyds Energy and was founded to build and Asian nations that as of now are not on a trajec-
WHY: operate LNG facilities in the North American tory to meet their climate targets. There is also
Qilak sees an opportunity Arctic using a near-shore concept of commer- the possibility that additional capacity could be
to use geographical cialising previously stranded Arctic natural gas added beyond 4mn tpy in future phases.
advantage to produce supplies for export to Asia. “This project could open up a whole new
cheaper LNG, while The proposed site for Qilak’s $5bn export ter- province of supply for LNG, ammonia and
geopolitical tensions minal would be 2,000 nautical miles (3,700 km) hydrogen ... There are geopolitical advantages,
could also drive closer to Asian markets than Novatek’s $27bn and diversifying Arctic gas supplies away from
importers away from Yamal LNG terminal in the Russian Arctic, Russia is generally a well-received concept,”
Russia. which delivered its first cargoes in 2017. Qilak’s CEO and chairman Mead Treadwell told
Capitalising on its geographic location, Qilak Reuters in an interview.
WHAT NEXT: believes it can produce LNG at a lower cost than The proposed project, which would be equiv-
A feasibility study is Yamal LNG. Likewise, competitors in the US alent to 1% of global LNG demand, is expected
scheduled for this year Gulf Coast would be hard pressed to challenge to utilise gravity-base structures with special
with FEED planned for
2024, and an FID could
come in 2025.

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