After more than 20 locations were evaluated, based on conditions related to the environment, socioeconomics, cost, and other project and technical issues, ExxonMobil, BP, ConocoPhillips and TransCanada have selected a site in the Nikiski area on the Kenai Peninsula as the lead site for the proposed Alaska LNG project’s natural gas liquefaction plant and terminal.

Steve Butt, the Senior Project Manager for the Alaska LNG project said in a statement on Monday, “This is a step forward for the Alaska LNG project and shows continued progress toward building Alaska’s energy future,” said Steve Butt, senior project manager. “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. 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.”

Although Nikiski is the lead site for consideration, the project team will continue to look at and consider other locations as secondary choices.

As the project progresses, the companies continue to refine the project concept that they have agreed upon. This includes a gas treatment plant to be located on the North Slope, and a liquification plant and terminal, as well as a forty-two inch 800-mile pipeline connecting the two. That pipeline will have at least five off-take points to be utilized for in-state gas delivery as well as compression stations.

Alaska’s Governor Parnell welcomed the news from TransCanada, BP, ConocoPhillips, and ExxonMobil and said that he wold continue to aggressively pursue an all-Alaska gasline to fuel Alaskans’ homes and businesses.

In a statement released on Monday he said, “This is real progress toward our administration’s goal of getting a natural gas pipeline to provide lower cost energy for Alaskans. This project is taking shape and the companies’ commitment will help bring Alaska’s gas to Alaskans and markets beyond. This presents a new opportunity for synergy and alignment among the producers and the project being pursued by the Alaska Gasline Development Corporation.”

Alaska’s Senator Begich reacted to the news of the project’s progress, saying, “The decision by Alaska’s major oil and gas producers to move ahead on a new project to deliver to market Alaska’s enormous natural gas reserves is great news for our state. This demonstrates that America’s leading energy companies have full confidence in their ability to economically produce Alaska’s natural gas resources.

As to the selection of Nikiski as the site for the project’s liquidation plant, he said, “A Nikiski area liquefaction plant and export terminal will be a multi-billion investment and huge shot in the arm to both Alaska’s economy and confidence in our state’s energy future. A gasline from Prudhoe Bay to the Kenai Peninsula can meet Alaska’s in-state energy needs while supplying the energy-thristy countries of the Asia Pacific.

“I’m keeping up my work in the Senate to advance an Alaska gas project. I already have introduced legislation to extend the benefits of the federal gasline coordinator’s office to any such gas project, including this LNG proposal. That legislation is significant to an LNG gasline, a pipeline to the Lower 48 through Canada or an all-Alaska gasline.”

State Lawmakers weighed in on the announcement as well. Rep. Mike Hawker and Speaker Mike Chenault, who sponsored House Bill 4, which passed the legislature in 2013. The bill created the Alaska Gasline Development Corporation as a stand-alone state corporation charged with developing gas pipelines, readily endorsed the news today.

“I couldn’t be more pleased that APP has selected the route with the potential to serve the majority of Alaskans,” Hawker, R-Anchorage, said. “I’m optimistic that today’s news is yet another indicator of the potential for APP and the Alaska Gasline Development Corporation to merge efforts into the project with the greatest possible benefits to Alaskans.”

“This route makes sense – Nikiski and the western Kenai have a long history of supporting LNG exports,” Chenault, R-Nikiski, said. “Clearly these world-class companies have thoroughly evaluated the pros and cons of possible terminuses, and I’m not surprised that they find the Kenai to be the best choice. All we need now is the go-ahead; let’s turn dirt.”

Democratic legislators also released a statement in reaction to the announcement of a large diameter pipeline, liquification plant and terminal.

“The big gasline has always been Alaska’s best option, and it’s good to see the project developers have selected a location that allows room to build a value-added industrial base,” said House Democratic Whip Chris Tuck. “This is one more step in the right direction, and we look forward to finding ways to keep this project moving forward for the benefit of all Alaskans.”

“The residents of Fairbanks have been waiting for a large-scale natural gas pipeline for decades, and I am pleased with the announcement,” said Representative Scott Kawasaki (D-Fairbanks). “A big gasline allows ample gas for Alaskans to meet local heating and energy needs by tapping into the resources going south.”

“With new finds in Cook Inlet, and this progress on the large-diameter gasline, Alaska’s energy future is looking up,” said Representative Andy Josephson (D-Anchorage). “The key now is to find a way forward that pencils out for both Alaskans and the industry.”

“A large-diameter line gets the lowest cost gas to Alaskans and the most revenue to the state,” said Representative Les Gara (D-Anchorage).