Alaska LNG project selects Kenai Peninsula for terminal site

  • Export terminal to supply gas to Asia’s energy-thirsty nations

Nikiski’s Kenai Peninsula, the largest cape on the southern coast of Alaska, has been selected as the preferred site for the South Central Alaska LNG project’s proposed LNG plant and terminal where gas would be liquefied and shipped to Asia.

After analysing the environmental and socio-economic impact of the project, as well as cost and related technical issues, of over 20 locations, the company’s behind the development, ExxonMobil Corp., BP PLC, ConocoPhillips, and TransCanada Corp, chose the Kenai Peninsula as its most suitable site.

Steve Butt, senior project manager for the South Central Alaska LNG project, told the Oil & Gas Journal that the site will allow access to natural gas from the North Slope for a number of densely populated areas in the region including Fairbanks, Anchorage and the Kenai Peninsula. The planned export terminal will also supply natural gas to the energy-thirsty countries of the Asia-Pacific.

“A Nikiski area liquefaction plant and export terminal will be a multi-billion investment and huge shot in the arm to both Alaska's economy and confidence in our state’s energy future,” said US Senator Mark Begich, D-Alaska.

The LNG project, which could cost as much as US$65 billion, must still overcome a number of engineering, regulatory and commercial hurdles before construction works can commence.

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