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ExxonMobil, BP, ConocoPhillips and TransCanada shape Alaska SC LNG

Kenai Peninsula selected to host Alaska SC LNG Trains

The super major companies ExxonMobil, BP, ConocoPhillips and TransCanada have selected Nikiski on the Kenai Peninsula in South Central Alaska to locate the liquefied natural gas (LNG) plant for their giant Alaska South Central (SC) LNG Project.

Over the last years these companies realized that the huge discoveries of natural gas accumulated in Alaska North Slope could no longer be exported to USA after the glut of production generated by the domestic shale gas.

ExxonMobil_BP_ConocoPhillips_TransCanada_Nikiski_Kenai-Peninsula_Alaska-SC-LNG_Project_MapFrom the last estimation the North Slope is containing more than 200 trillion cubic feet (tcf) probable reserves of natural gas out of which  a first 35 tcf have already be qualified as proven reserves.

With the evolution of the technology, there is no doubt that a significant share of these probable reserves should be converted into proven reserves.

Sitting on one of the largest reserves of natural gas in the world, after investing $700 million capital expenditure, ExxonMobilBPConocoPhillips and TransCanada need to find urgently a way out of the North Slope that had appeared first a promising highway to bonanza and turned to a non-drive end.

In 2012ExxonMobilBPConocoPhillips and TransCanada mobilized 200 of their best specialists for brain storming and proposing recommendations of possible North Slope ways out.

The partners shared the work load so that:

 – BP is in charge of the upstream side of the project to maximize gas production from the North Slope

 – ConocoPhillips is focusing on the LNG plant

 – ExxonMobil is performing the technical studies of the project

From these conclusions, 20 locations were shortlisted to install the Alaska South Central LNG Trains plant on the south coast of Alaska.

After inspecting all these places, ExxonMobilBPConocoPhillips and TransCanada have selected Nikiski on the Kenai Peninsula in South Central Alaska.

Alaska SC LNG to benefit from ConocoPhillips Kenai

It happens that ConocoPhillips had established a first LNG plant in Kenai about 40 years ago.

ConocoPhillips_Cascade_Kenai_LNG_AlaskaEven though the new Alaska SC LNG project should be erected in a different site, the currently running Kenai LNG plant and export terminal will provide the partners with reliable record of data about the region.

With capital expenditure estimated to range between $45 and $65 billion, ExxonMobil, BP, ConocoPhillips, and TransCanada are working on the pre-front engineering and design (pre-FEED).

From the team work performed by the partners at the conceptual level, the Alaska SC LNG Project should include:

 – Gas central processing facility (CPF) located on the coast of the North Slope to proceed to a first treatment of the raw gas before transportation.

 – 1,200 kilometers and 42-inch export pipeline from the North Slope gas CPF to the South Central LNG plant

 – Eight compression station along the export pipeline

 – Five take-off points for local delivery

 – Alaska Nikiski LNG Plant

 – Ice-free sea water marine terminal

The pipeline will have a transportation capacity of 3 billion cubic feet per day (cf/d) of natural gas.

From ConocoPhillips expertise with its proprietary Cascade LNG process, the Alaska SC LNG Plant should be designed around three LNG Train with a total capacity of 15 to 18 million tonnes per year (t/y).

After selecting Nikiski in the Kenai Peninsula, ExxonMobilBPConocoPhillips and TransCanada are targeting to complete the front end engineering and design (FEED) in 2016 for first production in 2020.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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1 Comment to “ExxonMobil, BP, ConocoPhillips and TransCanada shape Alaska SC LNG”

  1. We certainly hope and pray that President Trump’s Interior Department moves expeditiously to approve this project, as well as other oil drilling to increase the utilization of TAPS.

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