Kenai Peninsula chosen as LNG site

More than 20 locations were considered and evaluated by the companies behind the development: ExxonMobil, BP, Conoco Phillips and TransCanada Corporation.

Kenai Peninsula was chosen based on conditions related to the environment, socioeconomics, cost, and other project and technical issues.

“This is a step forward for the Alaska LNG project and shows continued progress toward building Alaska’s energy future,” said 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 centres in Fairbanks, Mat-Su Valley, Anchorage and the Kenai Peninsula,” he added.

While Nikiski is the lead site, the project team says it continues to consider other secondary locations.

A number of engineering, technical, regulatory, fiscal, commercial and permitting issues still need to be resolved as work on the potential $65bn project progresses.

Pipeline routing definition work also continues based on the project summer field work activities.

The proposed project includes a gas treatment plant on Alaska’s North Slope, an 800 mile pipeline, and a liquefaction plant with LNG storage and a two berth tanker terminal.

The export plant would have the capacity to make 15m to 18m tonnes of LNG annually.