The site was chosen after 20 locations were analyzed
regarding the environmental and socio-economic impact of the project, as well
as cost and related technical issues.
The pipeline, which could cost $45 billion to more than $65
billion to build, would span 800 miles from the North Slope to south-central
Alaska. The companies haven’t yet committed to build, however, and have been
seeking favorable terms on oil and gas taxes and royalties.
“The work that we have put into the site selection process
gives us confidence that the Nikiski site is the lead location for the LNG
plant and terminal,” senior project manager Steve Butt said. “The Nikiski site
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.”
Nikiski, a town of about 4,600 people, is located 10 miles
north of the city of Kenai. A liquefied natural gas plant operated in Nikiski
for decades and provided exports to Japan. But ConocoPhillips and its
then-partner, Marathon Oil Corp., announced in 2011 that the plant would be
closed, citing market changes.
