Home›Commodities›Energy›Alaska LNG costs could exceed Gulf Coast projects, Reu…

Alaska LNG costs could exceed Gulf Coast projects, Reuters analysis finds

The project was pitched alongside a touted $50 billion investment from South Korea, but Reuters analysis suggests per-production costs may be more than double Gulf Coast levels.

Reported · Written up by our desk · Energy

A Reuters analysis cited by OilPrice says the Trump Administration’s Alaska LNG proposal may not be commercially investable, because production costs could be more than double the costs at most US Gulf Coast LNG export projects.

The report also notes that the Trump Administration this week touted a $50 billion investment from South Korea tied to the proposed Alaska LNG project.

OilPrice says the full Alaska LNG project is estimated to cost between $44 billion, but the Reuters analysis raises concerns that the higher cost base could make the project uneconomic versus Gulf Coast alternatives.

More like this

Sources