Kenai LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Kenai LNG Terminal is located in Nikiski on the Kenai Peninsula in Alaska, and services the Kenai LNG Plant.[1][2] The facility has been mothballed since 2017.[3] A project to convert the export facility into an import facility has been proposed.[4]

Locations

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Project Details

Export Terminal

  • Owner: Trans-Foreland Pipeline Co LLC[5]
  • Parent: Marathon Petroleum Corp[5]
  • Location: Nikiski, Alaska, United States
  • Coordinates: 60.679484,-151.388340
  • Capacity: 1.5 mtpa[6]
  • Status: Mothballed[6][3]
  • Type: Export
  • Start Year: 1969[6]

Import Terminal

  • Owner: Trans-Foreland Pipeline Co LLC[5]
  • Parent: Marathon Petroleum Corp[5]
  • Location: Nikiski, Alaska, United States
  • Coordinates: 60.679484,-151.388340
  • Capacity: 7 million cubic feet per day (0.5 mtpa)[7]
  • Status: Proposed
  • Type: Import
  • FID Status: Pre-FID[4]
  • Start Year: 2025[4]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

The Kenai LNG Plant complex includes import and export facilities to transport LNG. The LNG terminal has been operating for 40 years, shipping LNG primarily to Japan. The Kenai LNG Plant was the world's largest plant when built.[8] The site's lease expired in March 2011, and remained inactive for over two years. A lease renewal was granted in April 2014 by the United States Department of Energy. The lease allows the export of the equivalent of 40 BCF of LNG over a two-year period.[1][9]

In February 2016, the U.S. Department of Energy approved ConocoPhillips' application to export about 40 billion cubic feet of natural gas from Kenai for two years.[10]

Kenai can export gas to any country the U.S. has a free-trade agreement with, or any with which trade is not prohibited.[10]

In 2017, ConocoPhillips mothballed the facility after a failure to find LNG buyers.[3]

In 2018, Marathon acquired ConocoPhillips' stake in the facility.[5]

Conversion to import facility

A project to convert Kenai LNG Terminal into an import facility has been proposed. In July 2022, Marathon Petroleum Corp's Trans-Foreland Pipeline Co unit submitted a request to the Federal Energy Regulatory Commission (FERC) to extend the end of its construction permit from 2022 to 2025.[4] In August 2022, FERC approved Trans-Foreland's request for an extension to complete the project until December 2025.[11]

In October 2023, Marathon Petroleum made its first public announcement regarding its plans to convert the mothballed export facility into an import facility.[12]

Articles and resources

References

  1. 1.0 1.1 "Kenai LNG Exports" ConnocoPhillips Alaska, accessed November 10, 2015.
  2. "Kenai Alaska Lng Terminal" A Barrel Full, accessed November 13, 2015.
  3. 3.0 3.1 3.2 "Facing global gas glut, ConocoPhillips to mothball Kenai LNG plant - Alaska Public Media". Alaska Public Media. 2017-07-13. Retrieved 2022-07-19.
  4. 4.0 4.1 4.2 4.3 "Marathon seeks more time to build LNG import project in Alaska". Reuters. Retrieved 2022-07-19.
  5. 5.0 5.1 5.2 5.3 5.4 FERC Clears Kenai LNG Terminal in Alaska for Imports. Natural Gas Intelligence. December 28, 2020.
  6. 6.0 6.1 6.2 Cite error: Invalid <ref> tag; no text was provided for refs named giignl
  7. LNG Prime Staff (2022-07-11). "Marathon's unit seeks more time for Kenai LNG import project". LNG Prime. Retrieved 2022-07-20.
  8. "Kenai LNG Exports" Alaska ConocoPhillips, Accessed 22 August 2017.
  9. "Alaska Kenai LNG to resume exports in May: update" Argus, April 30, 2015.
  10. 10.0 10.1 "U.S. approves ConocoPhillips LNG exports from Alaska" Reuters, Feb 9, 2016
  11. Scott DiSavino, Marathon gets more time to build LNG import project in Alaska, Reuters, Aug. 16, 2022
  12. Bradner, Tim (2023-10-25). "Marathon Petroleum now says its mothballed LNG plant near Kenai being considered for imports of liquefied natural gas". The Anchorage Press. Retrieved 2024-07-08.

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