Qilak LNG, owned by Lloyds Energy and which is led by the former Lt Governor of Alaska, Mead Treadwell as Chairman and CEO, is Lloyds Energy’s first project to fully deploy Near Shore Floating LNG (“FLNG”) technologies.
Qilak LNG’s objective is to commercialize prolific Alaskan gas resources using Near Shore FLNG.
Qilak LNG has signed the Heads of Agreement with ExxonMobil, the operator of the Point Thomson reservoir, which represents approx. 25% of known and recoverable natural gas resources on the Alaska’s North Slope. ExxonMobil continues to evaluate facility modifications and development activities necessary to support Major Gas Sales agreements with Qilak LNG.
Qilak LNG’s approach is to use New Shore FLNG technology aboard a shipyard-built “gravity-base structure” (“GBS”) to be stationed offshore Arctic Alaska, reached by a 6-mile pipeline. It will liquefy gas and load 3-5 icebreaking tankers per month to ship LNG to Asia. The concept lowers capital expenditures per ton of production dramatically over previous proposals in Alaska and North America.
LNG from Qilak LNG targets Asian buyers. Asian buyers experience economic and environmental benefits from Qilak LNG’s proximity, lower costs, and conventional gas’ lower carbon footprint.
Geopolitical and economic benefits come from Qilak LNG’s location on North America’s west coast which avoids the congested Panama Canal. There will be no competing “Henry Hub” market set price for the “stranded” natural gas supply sources from Alaska’s North Slope, allowing Qilak LNG to provide greater supply cost certainty over other North American LNG projects.
Qilak LNG’s competitive advantages include:
- Led by Mead Treadwell, the former Lt Governor of Alaska (2010-14), Chair and Commissioner of the US Arctic Research Commission (2001-2010), and Founding VP/CFO of Yukon Pacific Corporation LNG Project Co.
- Has secured a Heads of Agreement with ExxonMobil to reserve gas supply while project feasibility and development is finalized
- Proven and cost-advantaged LNG solution and technologies with significant savings versus USGC, Western Canada, East Africa and AUS/PNG
- Facility expected to export 4 MTPA of LNG to customers in East Asia
- No Jones Act restrictions associated with Near Shore FLNG facility
- Targeting completion by end of 2028, at a time where LNG demand is forecasted to exceed current LNG supply under construction
- Several downstream projects are under consideration that would provide Qilak LNG with additional access to key growth markets across Asia
- Management team with deep experience and strong political support in Alaska, East Asia and Washington, D.C.