Exxon Mobil Corporation
) along with Calgary-based
) have chosen a site for its planned mega project to transport
liquefied natural gas (LNG) from Alaska.
Located in the Nikiski area on the Kenai Peninsula, the site was
selected after appraisal was conducted relating to environment,
socioeconomics, cost, and other project and technical issues of
over 20 sites. It will serve as the lead site for the proposed
Alaska LNG project's natural gas liquefaction plant and terminal.
The Nikiski site also provides a pipeline route that would offer
an access opportunity to key natural gas markets of Fairbanks,
Mat-Su Valley, Anchorage and the Kenai Peninsula in the North
Slope. The project team is looking for secondary locations.
Project costs are expected to touch $65.0 billion. Several
engineering, technical, regulatory, fiscal, commercial and
permitting issues still need to be determined as work on the
potential project advances.
Based on the project summer field work activities, pipeline
routing definition work are being carried out and would be
extended south of Livengood. Constant improvement of the agreed
project concept is being carried out by the companies. Currently,
the teams are planning on a more comprehensive engineering and
design work, consistent with previously released plan phases.
The project will comprise an 800 mile pipeline, which will run
from North Slope to South-Central Alaska. It also includes the
construction of a liquefaction plant and storage tanks, a gas
treatment plant, 42-inch pipeline with about eight compression
stations and at least five off-take points for in-state gas
In the next couple of decades, liquefied natural gas from
Australia, East Africa, the U.S., Gulf Coast and Canada will
enter the global markets posing stiff competition for the
venture. Therefore, for a project having exceptional scale,
complexity and cost, a competitive, predictable and durable oil
and gas fiscal environment is a necessity to compete in the
global energy market.
Currently, Exxon Mobil, BP Plc, ConocoPhillips and TransCanada
hold a Zacks Rank#3 (Hold).
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