Marathon gets more time to build LNG import project in Alaska

A view reveals pipes main from an oil tanker close to Marathon Petroleum’s refinery, following Russia’s invasion of Ukraine, in Anacortes, Washington, U.S., March 9, 2022. Image taken with a drone. REUTERS/David Ryder

Aug 16 (Reuters) – Marathon Petroleum Corp’s (MPC.N) Trans-Foreland Pipeline Co unit obtained extra time to transform the Kenai liquefied pure gasoline (LNG) export plant in Alaska into an import terminal, U.S. vitality regulators mentioned on Tuesday.

The U.S. Federal Vitality Regulatory Fee (FERC) authorized Trans-Foreland’s request for an extension to finish the mission till December 2025.

FERC first authorized Trans-Foreland’s request to construct the plant in December 2020 and gave the corporate till December 2022 to position it into service.

Trans-Foreland mentioned it has but to make a ultimate funding determination (FID) to construct the mission as a result of the COVID-19 pandemic and the conflict in Ukraine have worsened financial and logistical situations.

“Uncertainty and volatility within the international LNG market have made it tough for Trans-Foreland to safe an acceptable provide association that would supply the monetary certainty essential for the mission,” Trans-Foreland mentioned in an earlier submitting.

Trans-Foreland, nonetheless, mentioned the mission “stays commercially viable.” The corporate mentioned it “is actively looking for appropriate provides and monitoring LNG markets.”

As soon as Trans-Foreland makes business preparations for appropriate provide, the corporate mentioned it anticipates making its FID and shifting ahead with the mission.

Trans-Foreland has mentioned the ability would import as much as 4 tanker a great deal of LNG per 12 months and use its boil-off gasoline administration system to ship imported gasoline to the adjoining Kenai refinery.

The Kenai LNG export plant entered service in 1969. It has not exported LNG since 2015.

The plant was the one massive LNG export facility in North America till Cheniere Vitality Inc’s (LNG.A) Sabine Move export terminal in Louisiana entered service in February 2016. Almost the entire LNG from Kenai went to Japan.

Reporting by Scott DiSavino
Enhancing by Marguerita Choy

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