Report 

Submitted to the 

United States Congress 

by the Federal Energy Regulatory Commission

Eighteenth Report to Congress on Progress Made in Licensing 

and Constructing the Alaska Natural Gas Pipeline

August 2014
Eighteenth Report to Congress on the Alaska Pipeline

I. Executive Summary

The Federal Energy Regulatory Commission (Commission) submits this report

pursuant to section 1810 of the Energy Policy Act of 2005 (EPAct 2005).1

 Section 1810 

of EPAct 2005 requires that the Commission submit to Congress semi-annual reports 

describing the progress made in licensing and constructing an Alaska natural gas pipeline 

and any impediments thereto. 

This report provides an update from the Commission’s Seventeenth Report, 

submitted on March 4, 2014. That report highlighted that the State of Alaska has signed 

a pair of agreements with North Slope producers ExxonMobil, ConocoPhillips and BP, 

along with pipeline partner TransCanada, intended to advance an Alaska LNG export 

project. Those agreements were activated by Alaska Senate Bill 1382 which paved the 

way for Alaska LNG Project, LLC’s3 (Alaska LNG Project) filing on July 18, 2014 of an 

application with the U. S. Department of Energy, Office of Fossil Energy (DOE-FE) 

seeking authorization to export liquefied natural gas (LNG) from an Alaskan LNG 

terminal located in Nikiski to any country with which the United States currently has, or 

in the future may enter into, a free trade agreement (FTA) or any non-free trade 

agreement (non-FTA) countries. 

As reported in its DOE-FE application, the Alaska LNG Project would consist of: 

(i) liquefaction and export facilities; (ii) an approximately 800-mile-long gas pipeline 

from the liquefaction facility to the gas treatment plant; (iii) gas treatment plant; and (iv) 

transmission pipelines between the gas treatment plant and producing fields. The 

pipeline would transport between 3 and 3.5 billion cubic feet per day (Bcf/d), providing 

North Slope gas to Alaskans at a minimum of five points along the route for in-state use, 

and ultimately to the LNG export terminal that would have an export capacity equivalent 

to 2 to 2.4 Bcf/d. 

 1

 P.L. 109-58, 119 Stat. 594 (2005), 42 U.S.C § 15801 et seq.

2 On April 20, 2014, Alaska State Legislature passed Senate Bill 138, later signed 

into law by Governor Sean Parnell on May 8, 2014. 

3 The Alaska LNG Project consists of ExxonMobil Alaska LNG LLC 

(ExxonMobil), ConocoPhillips Alaska LNG Company (ConocoPhillips) and BP Alaska 

LNG LLC (BP) (collectively, Project Sponsors). Affiliates of the Project Sponsors

currently hold oil and gas leasehold interests in Alaska, including in the Prudhoe Bay and 

Point Thomson Units. Alaska LNG Project may seek to amend the Application at a later 

date to add a State of Alaska designee.
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II. Status Report 

A. TransCanada Alaska Company, LLC Alaska Pipeline Project Status

On May 11, 2012, TransCanada Alaska Company, LLC (TC Alaska) notified the 

Commission that it was curtailing interim work on the North Slope to Alberta option of 

its planned Alaska Pipeline Project while requesting to maintain the record in Docket No. 

PF09-11 for potential future use. TC Alaska submitted Quarterly Reports to the 

Commission in April 2014 and July 2014 stating that no additional work had been 

completed for the Alaska Pipeline Project during the reporting period. 

On July 26, 2014, TC Alaska filed with the Commission its intent to terminate the 

prefile review process for the Alaska Pipeline Project in Docket No. PF09-11. In its 

filing, TC Alaska requests that the Commission maintain the administrative record in the 

subject docket for reference or use in any future project in Alaska by TC Alaska and its 

affiliates and co-venturers.

B. Alaska LNG Project, LLC Activities

The Alaska LNG Project seeks DOE-FE authorization to export LNG to FTA and 

non-FTA countries on its own behalf and as an agent of any of the following: 1) each of 

its members; 2) the respective affiliates of its members; 3) the State of Alaska or its 

nominee; and 4) other third parties, under contracts to be executed in the future, as 

applicable. 

In its DOE-FE application, Alaska LNG Project requests that since its application 

stands on its own merits without regard to the cumulative impacts of LNG exports from 

the Lower 48, and given the unique nature of the project and the geographically separate 

supply base, its application should not be subject to DOE-FE’s Order of Precedence for 

Processing Non-FTA LNG Export Applications.

 

C. The Commission’s Activities

The Commission remains ready to resume its responsibilities as the lead federal 

agency for conducting the National Environmental Policy Act (NEPA) review of any 

future proposal by Alaska LNG Project or another entity. Representatives for the project

have been meeting with the FERC Staff to discuss the proposed regulatory framework 

and environmental aspects of the Alaska LNG Project. The Commission continues to 

monitor activities regarding any natural gas pipeline or LNG project in Alaska for which 

the Commission would have jurisdiction. 
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III. Related Activities 

Operations of the Federal Coordinator

The Office of the Federal Coordinator for Alaska Natural Gas Transportation 

Projects (OFC) continues to coordinate the actions of federal agencies regarding Alaska 

natural gas transportation projects and to provide a liaison function to ensure 

communication with Congress, the State of Alaska, and federal U.S. and Canadian 

agencies. On May 19, 2014, the OFC held an Interagency Meeting focusing on recent 

developments in Alaska regarding the Alaska LNG Project. That meeting highlighted 

certain aspects of Senate Bill 138 as it relates to the development of the Alaska LNG 

Project. 

Referred to as "enabling legislation," the changes in state law activated two 

documents signed last winter: 1) the Heads of Agreement signed in January by the State 

of Alaska, the Alaska Gasline Development Corporation, ExxonMobil Alaska 

Production, Inc., BP Exploration (Alaska) Inc., ConocoPhillips Alaska, Inc., and 

TransCanada Alaska Development Inc. covering joint ownership of the project, fiscal and 

other terms; and 2) the Memorandum of Understanding signed by the State of Alaska and 

TransCanada, setting out terms for their pipeline arrangement.

The OFC continues to provide updates on its website (www.arcticgas.gov)

regarding national and world-wide natural gas issues that may affect the ultimate 

disposition of Alaskan North Slope natural gas. 

IV. Conclusion

No progress has occurred since the last report on a project bringing Alaskan 

natural gas from the Alaskan North Slope to Lower 48 state markets. However, the 

Commission is ready to move forward to the next step in its NEPA process when the 

Alaska LNG Project submits a request to enter the Commission’s pre-filing process.