|  October 25, 2014  |  
Overcast   35.0F  |  Forecast »
Bookmark and Share Email this page Email Print this page Print Feed Feed

Sponsors pick Nikiski area as lead site for Alaska LNG plant

Sponsors of the large-volume Alaska LNG project have selected the Nikiski area as the lead site for the gas liquefaction plant and export terminal, they said Oct. 7.

"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," said Steve Butt of ExxonMobil, senior project manager. Alaska North Slope oil and gas producers ExxonMobil, BP and ConocoPhillips are partnering with pipeline company TransCanada on the project, which is in the early stages of development.

The companies are considering a $45 billion to $65 billion-plus project that would include a gas treatment plant on Alaska's North Slope, a roughly 800-mile pipeline to Southcentral Alaska, a liquefaction plant with the capacity to make 15 million to 18 million metric tons of LNG annually — the equivalent of 2 billion to 2.4 billion cubic feet a day of gas — plus LNG storage tanks and a two-berth shipping terminal. The pipeline would carry 3 billion to 3.5 billion cubic feet of gas from the North Slope fields, with Alaskans taking out some gas along the way and more consumed to run the pipeline and liquefaction plant.

While Nikiski is the lead site, the project team is considering other secondary locations. Nikiski was one of more than 20 locations in Southcentral Alaska the team considered viable for an LNG plant, they said. Sites were evaluated based on conditions related to the environment, socio-economics, cost and other project and technical issues, they said.

Selection of Nikiski as the lead site "is a step forward for the Alaska LNG project and shows continued progress toward building Alaska's energy future," Butt said. "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."

Nikiski lies on the Kenai Peninsula about 60 air miles southwest of Anchorage. It already is home to an LNG plant. A small ConocoPhillips export plant operated there from 1969 through last fall before being shut down for lack of a reliable feedstock of methane from nearby Cook Inlet gas fields. That plant lies in an industrial area that also includes a Tesoro oil refinery and a mothballed Agrium fertilizer plant and once was home to a Chevron refinery.

As for the overall project, engineering, technical, regulatory, fiscal, commercial and permitting issues still need to be resolved, the companies said. "The teams are currently preparing for more detailed engineering and design work, consistent with previously released plan phases," they said. "Pipeline routing definition work also continues based on the project summer field work activities." The work will now extend south of Livengood, the end point of this past summer's field work. (Livengood is just north of Fairbanks.)

"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 project announcement said.

Alaska Natural Gas Transportation Projects
For more information and updates, please visit our website: Arcticgas.gov.
 

Sponsors pick Nikiski area as lead site for Alaska LNG plant

Sponsors of the large-volume Alaska LNG project have selected the Nikiski area as the lead site for the gas liquefaction plant and export terminal, they said today.

Read more >

Oil and gas news divider

 
 
 
Alaska Natural Gas Transportation Projects
1101 Pennsylvania Ave. NW, 7th Floor
Washington, DC 20004
   
Copyright © 2013 Alaska Natural Gas Transportation Projects, All rights reserved.

 

Add your comment:
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement