Friday, May 21, 2010

FERC denies Yukon Pacific request for more time to build LNG plant

JUNEAU, Alaska - Federal regulators have denied a request by Yukon Pacific Co. to give the company more time to build a liquefied natural gas plant in south-central Alaska.
The denial by the Federal Energy Regulatory Commission (FERC) creates new questions about an option to liquefy natural gas from the North Slope for shipment by sea, which is part of a proposal to build a “bullet” pipeline to bring Alaska's gas to Valdez for liquefaction and then export by sea to domestic or overseas markets.
FERC, in its denial letter, said environmental and regulatory standards have changed since the company obtained permission to build in 1995, and those need to be addressed.
Permission had been extended repeatedly. But the letter from Jeff C. Wright, director of the office of energy projects, said the company's ability to build and run an export terminal for liquefied natural gas near Valdez will no longer be valid after May 15.

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