NEWS BULLETIN

October 07, 2013 --- Vol. 19, No. 59October 2013

Nikiski lead site for LNG plant, terminal

ExxonMobil, BP, ConocoPhillips and TransCanada said today that they have selected a Nikiski area site on the Kenai Peninsula as the lead site for a proposed Alaska liquefied natural gas project liquefaction plant and terminal.

More than 20 locations were evaluated based on conditions related to the environment, socioeconomics, cost and other project and technical issues, the companies said.

Alaska Gov. Sean Parnell said the companies have agreed “to pursue the acquisition of property in the Nikiski area to site the liquefaction facilities associated with the Alaska LNG project,” and called the decision “real progress” toward his administration’s goal of a natural gas pipeline.

Steve Butt of ExxonMobil, senior project manager, called it a step forward for the Alaska LNG project.

He said that in addition to site selection factors, Nikiski “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.”

While Nikiski is the lead site, secondary locations continue to be considered, the companies said. And work continues on a number of engineering, technical, regulatory, fiscal, commercial and permitting issues.

The project concept includes a gas treatment plant on the North Slope, an 800-mile pipeline with up to eight compressor stations and at least five off-take points for in-state gas delivery, and a liquefaction plant and terminal.

“The teams are currently preparing for more detailed engineering and design work, consistent with previously released plan phases,” the companies said.

Cost of the project has been put in the $45 billion to $65 billion range, and the companies noted that “competitive, predictable and durable oil and gas fiscal” terms are required for the project.

—Kristen Nelson

See story in Oct. 13 issue, available online at 11 a.m., Friday, Oct. 11 at www.PetroleumNews.com.


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