Proposed LNG Facility Has Sights Set On Nikiski

More than 20 locations have been evaluated by ExxonMobil, BP, ConocoPhillips and TransCanada and it would seem they have set their sights on the industrial town of Nikiski.


Locations were based on conditions related to the environment, socioeconomics, cost and other project and technical issues.


We spoke with Senior Project Manager Steve Butt about why they chose Nikiski.


Butt: “There’s a couple things about Nikiski that are attractive. We think from a production, long term capability to operate the facility they have a good industrial infrastructure there. We think that in terms of construction there is limited civil work required so its easier to build there. We think we can offload what we need from the inlet and you can access the airport so it has some infrastructure advantages it also has some construction advantages”.


Butt went on to highlight some of the great opportunities this facility would create.


Butt: “It would be a very large investment, tens of billions of dollars the number we’ve released previously is $45-64 billion it would create in excess of 15,000 construction jobs it would create hundreds or long term operating times but more importantly what it really does is unlock the resource potential of the North Slope and it allows the State of Alaska to move gas from the North Slope to a place that it can be exported and that allows Alaska to have revenue from its hydrocarbon resources many decades beyond what it would achieve without a gas system”.


While Nikiski remains the lead site, the project team is continuing to look at other secondary locations. Pipeline routing definition work also continues based on the project summer field work activities, which will be extended south of Livengood.

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