Page 7 - NorthAmOil Week 11 2023

NorthAmOil COMMENTARY NorthAmOil

Qilak LNG would be
supplied with feed gas
from the Point Thomson
field.

weighted legs that support offshore platforms. inside and outside Japan, as well as firms that
The structure would be linked to the shore by a can help us reduce the carbon footprint of the
6-mile (9.6-km) pipeline. project,” Treadwell stated.
A target of three to five tankers per month Meanwhile, Qilak still must choose firms
would be delivered to Asia, although Japan’s for engineering, procurement and construc-
LNG terminals could be used for tranship- tion (EPC), in addition to shipping. However,
ment further afield. Qilak would also use Arc7 Treadwell did indicate that Nana Worley and
tankers, since they are able to seal in the Arctic Aker Arctic Technology are likely to handle the Capitalising on
waters. feasibility study.
“If we stay on schedule then the feasibility its geographic
Long runway ahead study would be done this year and with front- location, Qilak
Demand for LNG in Asia has always been end engineering design [FEED] in 2024,” he
strong, with Japan, China, and South Korea said. Depending on a number of conditions, a believes it can
assuming the top three positions last year. More- final investment decision (FID) could be made
over, a handful of other Asian countries are set in 2025, with the launch of the terminal by 2030. produce LNG at a
to become LNG importers in the next couple The US Arctic possesses proven gas reserves
years, including the Philippines, Vietnam and Sri of 920bn cubic metres; however, developers are lower cost than
Lanka. However, despite Asia’s growing appetite getting mixed signals from the Biden adminis- Yamal LNG.
for LNG, imports of the super-chilled fuel from tration. On March 6, President Biden gave for-
Qilak’s proposed terminal likely will not occur mal approval for ConocoPhillips’ $8bn Willow
until the end of the decade. oil project. (See previous story) However, on
A heads of agreement (HoA) deal has been March 13 the administration withdrew 2.8mn
signed with ExxonMobil Alaska Production acres (11,331 square km) from consideration
to supply 560mn standard cubic feet (15.9mn for leasing in the Beaufort Sea, while the Inte-
cubic metres) per day of gas from the Point rior Department has recently said it will block
Thomson field to the Qilak project. oil and gas leases for over 13mn acres (52,609
The company is currently working together square km) of the 23mn acres (93,078 square
with investment bank Lazard to attract financ- km) that comprise the National Petroleum
ing. “We are speaking to potential investors Reserve–Alaska (NPR-A).™

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