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Alaska LNG main site selected

LNG Industry,

ExxonMobil, BP, ConocoPhillips and TransCanada have selected an area in the Nikiski area on the Kenai Peninsula as the main site for the proposed Alaska LNG project’s natural gas liquefaction plant and terminal.

Over 20 locations were evaluated based on conditions related to the environment, socioeconomics and cost.

Alaska’s energy future

"This is a step forward for the Alaska LNG project and shows continued progress toward building Alaska’s energy future,” commented Steve Butt, senior project manager.

“The work that we have put into the site selection process gives us confidence that the Nikiski site is the lead location for the LNG plant and terminal. The Nikiski site also results in a pipeline route that provides an access opportunity to North Slope natural gas by the major population centers in Fairbanks, Mat-Su Valley, Anchorage and the Kenai Peninsula”, he added.

A number of issues including engineering, technical, regulatory and fiscal concerns still need to be resolved, as work on the project valued at an approximate US$ 45-65 billion continues.

While Nikiski is the main site, other secondary locations are still being considered.

Competition in global energy markets

The companies are continuing to refine the agreed project concept that includes a gas treatment plant located on the North Slope, an 800 mile, 42 inch pipeline with up to eight compression stations and at least five off-take points for in-state gas delivery, and a liquefaction plant and terminal.

A competitive, predictable and durable oil and gas fiscal environment will be required for a project of this unprecedented scale, complexity and cost to compete in global energy markets. The companies remain committed to working with the state to responsibly develop North Slope resources. A successful project could provide a host of economic benefits to Alaskans including state revenues, new job opportunities and access to decades of domestically-produced natural gas for homes and businesses.


Adapted from press release by Katie Woodward

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