The Alaska LNG project would be among the world’s largest natural gas development projects. And the single largest component — the gas liquefaction plant and marine terminal — would be built in Nikiski, on the Kenai Peninsula.
Though a construction decision by the project sponsors is at least a few years away, the Kenai Peninsula Borough is devoting significant time to understanding the project’s potential impacts on residents, services and the local economy. The borough mayor’s office is working with the project sponsors and state and federal regulators to ensure community needs are addressed.
The mayor’s office prepares regular updates for posting to this website, sharing information about the project and also global gas markets so that residents can better understand the issues affecting the megaproject — its design and construction planning, permitting and economics.
The project sponsors are North Slope producers ExxonMobil, ConocoPhillips and BP, as well as pipeline company TransCanada and the state of Alaska. The companies estimate the cost at $45 billion to $65 billion (2012 dollars), which includes a massive plant on the North Slope to cleanse the gas of carbon dioxide and other impurities; approximately 804 miles of 42-inch-diameter pipeline from Prudhoe Bay to the west side of Cook Inlet and across to Nikiski; and the liquefaction plant, storage tanks and shipping terminal at Nikiski.
The pipeline would be built to carry 3 billion to 3.5 billion cubic feet of natural gas per day. Alaskans would use some of this gas, and running the compression stations along the pipeline and LNG plant would consume some. The liquefaction plant would have the capacity to make up to 20 million metric tons a year of LNG (about 2.5 billion cubic feet a day of gas).
The project is in the pre-front-end engineering and design phase, which is expected to be completed in 2016. The sponsors could submit their project application and final environmental and engineering reports to the Federal Energy Regulatory Commission in late 2016. The sponsors’ schedule — subject to change — shows FERC issuing its draft environmental impact statement in late 2017, a final EIS in 2018, and an investment decision by the partners in 2019 whether to proceed with construction.
First production at the LNG plant could come in 2025.