AIDEA salutes NSB's support of Alyeschem

Kay Cashman

Petroleum News

On June 11, the Alaska Industrial Development and Export Authority thanked the North Slope Borough for its resolution of support of the Alyeschem project.

The borough's resolution supports collaborative efforts with AIDEA to advance economic development, create jobs, and decrease emissions.

The Alyeschem facility will create methanol and hydrogen from existing stranded natural gas. The hydrogen will then be used to turn locally available high sulfur fuel oil into ultra-low sulfur diesel and reduce imports on the Dalton Highway by more than 4,000 trucks each year, AIDEA said.

Alyeschem estimates the plant's operations will also reduce CO2 emissions by 93%, or 45,000 tons annually compared with current supply chains, by transforming a blend of natural gas and CO2 into methanol.

AIDEA recently announced financial support for the Alyeschem project by committing up to $70 million in loan financing. This project aligns with AIDEA's mission to promote economic growth and diversification in Alaska through innovative and responsible development.

"The collaboration with Mayor Patkotak and the North Slope Borough Assembly for the Alyeschem project shows a shared vision to foster resource development and economic growth for the region," Randy Ruaro, executive director of AIDEA, said in a statement.

AIDEA is a public corporation of the state of Alaska.

Alyeschem will be using an existing gravel pad at Prudhoe Bay, sharing use of the pad with Hilcorp affiliate Harvest Midstream. Harvest is building a liquefied natural gas facility on its part of the pad.

The purpose of the new LNG plant is to supply LNG to Interior Gas Utility in Fairbanks, for the supply of gas to IGU's customers in the Fairbanks and North Pole region. IGU is switching its LNG supplies from Cook Inlet to the North Slope because of uncertainty over the adequacy of future gas production in the Cook Inlet region. The Fairbanks utility is in the process of expanding its customer base and will truck the LNG from Prudhoe Bay to storage facilities in Fairbanks and North Pole.

Harvest anticipates the plant starting up by the end of 2024.

For information about AIDEA or any of its projects, visit www.aidea.org or contact AIDEA at [email protected].

--KAY CASHMAN