Harvest Alaska announced an agreement with Marathon Petroleum Corporation and Chugach Electric Association to enhance Southcentral Alaska’s energy supply through the acquisition and redevelopment of the Kenai LNG Terminal.
The project aims to repurpose existing assets, allowing for the timely delivery of additional natural gas to the region as early as 2026, with full-scale operations projected to begin by 2028.
Under the proposed plan, Harvest will take ownership of, develop, and operate the LNG terminal and infrastructure, ensuring that Chugach, MPC, and other Railbelt customers have access to much-needed natural gas supplies to meet market demands. The initiative leverages MPC’s existing LNG export infrastructure to help address a potential short-term natural gas shortage facing the region.
The Kenai LNG facility boasts existing dock infrastructure capable of accommodating LNG vessels of up to 138,000 cubic meters (approximately 2.9 billion cubic feet of natural gas) and onsite storage tankage with a capacity of 107,000 cubic meters (approximately 2.3 billion cubic feet of natural gas). With existing approvals from the Federal Energy Regulatory Commission (FERC), the facility is well-positioned to provide an immediate energy solution while long-term alternatives are explored.
“Harvest has a long history of operating critical oil and gas infrastructure across the state, and this announcement furthers our commitment to ensuring Alaska has the energy it needs,” said Harvest CEO Jason Rebrook. “By repurposing Marathon’s existing LNG facility, we aim to provide certainty to the Southcentral gas market while meeting the needs of Railbelt utilities. We are proud to collaborate with Marathon, Chugach Electric, and other Southcentral utilities to bring this project online and ensure the reliable delivery of natural gas in a timely and cost-efficient manner.”
Harvest Alaska, a subsidiary of Harvest Midstream, is a privately held midstream services provider based in Anchorage. It operates pipeline systems in Cook Inlet and on the North Slope and is part of Harvest Midstream, a US company based in Houston.
Chugach is in discussions with Harvest to use the Kenai LNG facility.
“Providing our members with safe, reliable, and affordable electric service is core to our values and mission. We are pleased to have a potential solution to meet the gas needs of our members at the right time,” said Chugach CEO Arthur Miller. “We’ve been exploring options to fill the gap left by our expiring Hilcorp contract, which ends on March 31, 2028. This project presents a great opportunity to work with partners who have extensive experience and knowledge of gas operations in Alaska. We look forward to continued discussions and analysis with Harvest Alaska as they progress the front-end engineering and design study over the next several months.”
MPC also expressed strong support for the project, emphasizing its potential benefits for the region’s energy security.
“We believe the Kenai LNG terminal offers the quickest and lowest-cost solution to bring additional natural gas to Southcentral Alaska and beyond,” said Bruce Jackman, Vice President of MPC’s Kenai Refinery. “Our Kenai refinery employees work around the clock to provide gasoline, diesel, and jet fuel to their fellow Alaskans, and a reliable supply of natural gas is critical to the refinery’s operations. We’re excited about this partnership with Harvest and Chugach to work toward bringing new natural gas to the region.”
With Southcentral Alaska facing a natural gas shortage, the acquisition and redevelopment of the Kenai LNG Terminal may be a significant step in securing a stable and efficient natural gas supply for the region’s future. The project’s strategic use of existing infrastructure, coupled with strong partnerships among key industry players, underscores a commitment to energy reliability and sustainability in the state.
So(?), AK907 is going to ‘import’ LNG from afar // out-of-state?
Unless you’ve got 50 billion dollars you are willing to lose money on, yes.
We can import far cheaper gas for decades before a North Slope to South Central gas pipeline makes financial sense. Unless you expect the State to flush the Permanent Fund down the toilet.
Why can we Alaskans not do math once we hear ‘gas line’?
Great news! Even better that we now have an administration that is unlikely to sign an EO or back a court case that shuts this down because of greenhouse gases or climate change.
Common sense is finally prevailing. Or is it just the lack of other options now that the clock is running out?
No mention as to how much investment is being made to do this. As it sits, unless other electrics and Enstar sign up, all the expenses will settle on Chugach ratepayers. Is the Beluga gas field depleted?
It’s not depleted. It’s just hilcorp doesn’t want to extend the leased on their rigs. There is lots of gas still there. But no one’s wants to step up and go after it. People are too afraid of the environmentalists.
Good news! The alternative was waiting for the wind to blow, the water to flow, and the sun to shine. All good alternatives for a cabin on the Deshka. Not so good for a metropolis of nearly 400,000. There are elements within our society. I will call them sociopaths. These lost souls serve a god called called policy and procedures. You serve this god at all costs. Bureaucrats, academics, and tyrants comprise the clergy within this false religion.
Let me get this right , we exported gas at one time from Cook Inlet . Had one of the largest fertilizer plants in the world . Used enormous amounts of gas . We have trillions of cubic feet of gas reserves in CookInlet and now we are going to import LNG ? Not getting the full story here . Oh wait a minute , the state made sure one company controls the gas production . Now I’m starting to smell the rat . It’s got something to do with the state and one gas producer . Ah , it’s all coming to me ! I think it’s gonna get real expensive to provide gas for the folks in Anchorage . Jeez now you chumps will be just like Fbks !!
Time to switch over to coal fired boiler. Unbelievable we can’t get our sh– together to get gas from the north slope. Definitely not going to bother with natural gas at my new home.
And where will this gas be originating from?
Likely British Columbia, Canada, where a couple of new LNG export plants are coming on line. Hopefully, any LNG imports are exempted from any future tariffs because imported LNG is already going to be substantially more expensive.
And imagine isn’t enstar a Canadian company. How convenient. State with more natural gas than anyone else on earth and we are not smart enough to glue pipe together for 800 miles to get it here. Brilliant bunch arnt we???
Will Chugach invest in this project? They are already financially desperate and trying to increase rates by another 8%. This also reeks of too much control by Hilcorp and maybe the FTC needs to take a look at this one.
No no no!
We must run away from ALL fossil fuels, and use only SUSTAINABLE wind and solar power!
Because as everyone knows, wind turbines and solar panels are ‘sustainable’ because they are financially free and do not depend on any mining or manufacturing, nor have any maintenance and decommissioning costs, being handed down from on High by God himself with no further ancillary costs involved.
Yes and you can collect dinner at the bottom of every windmill daily. Ducks, geese, swans, regular delicatessen.
Too true! We ought to use all sources of renewable energy whenever/wherever possible using gas or other petroleum energy sources as adjunct.
Jefferson,
You are so wrong on everything, wind turbines are not
reliable at all (high failure rate) and produce nothing
when the wind stops or it blows to much. Solar panels
are only good for a few years then need to be
replaced, don’t work in the dark or cloudy days.
And where do the materials for all these wind turbines and solar panels come from? They are made from mined materials and oil based products and they are not maintenance free with quite a few ancillary costs. Even God knows this!!!
Dear BN and Tom Wright,
I am sorry that what I felt was my completely obvious sarcasm went entirely over your heads. I would have thought that the “handed down from on High by God himself” part was a dead giveaway.
In other words, I agree with you both. There is nothing, NOTHING “sustainable” about solar panels and wind turbines as sources of power. They are both, if anything, LESS sustainable that using fossil fuels.
Another breath of fresh air!
Clean energy
LNG
I ask again: where is this imported gas going to come from?
West coast
There are no LNG export facilities on the American west coast. They are all in Texas, Louisiana, and Pennsylvania. If we import LNG, it will have to be from a foreign exporter.
And I ask yet again: Where will this gas come from?
Likely British Columbia, Canada, where a couple of new LNG export facilities are coming on line.
Complete with tariffs?
Ever hear of a place called the Middle East?
Funny, but no.
El Canada of course. Same place enstar is from.
This is an interesting answer, but Canadian gas is as unpredictable as Alaskan gas with respect to stable prices, as Trump has just proven.
This will raise costs to the consumer.
A few new wells in Cook Inlet would be cheaper and safer as the tides and ice in the inlet make shipping risks greater than normal.
What about the whales and shipping?
So drill some wells. Go ahead, we will wait.
The existing players know the field. They aren’t drilling. Why?
Because the risk and return is not as much as oil.
If the well is not a producing hole than the money they spent is gone. That’s how the oil patch works. If they find a couple of wells that have producible gas that gas won’t make them much money. So money is at the bottom of it.
State regulations make it very expensive to drill and produce . Enormous gas fields are across inlet and no place to inject the water from the production . One company several years ago found 2TCF of gas drilling an oil well on other side . No company’s want to invest in drilling for gas in CookInlet as too expensive to produce . They’ve got to get the rates up . This will be accomplished by shipping in LNG
Let’s hope things go smoothly and that this is very temporary.
?
So Hilcorp who already has a monopoly on South Central natural gas, now wants to purchase the one main option to import natural gas. No.
Hilcorp only has 85% of the market because there is a lack of drilling from anyone else. Id recommend watching the Senate Resources meeting on CI Natural Gas last month, there was a map that shows leases/drilling activity. Hilcorp’s leases were riddled with holes while Cosmo and Kitchen Lights showed limited activity. Hilcorp is drilling, their land is just tired.
That being said, if they were the evil monopoly you seem to think they are, I doubt they would be encouraging other drillers to take market share as they have been.
This article says nothing about what the repurpose is nor do the canned, vague, press release statements. So are we now switching to LNG imports? I have more questions than answers with this article. So Hillcorp is no longer going to supply gas? Or is this just negotiating posture for contract talks with Hillcorp? Kind of like what Trump does with the art of the deal?
It’s some form of corruption, and a lot of people have to be involved.
This is looking like a hurry up before Trump finds out, Why would Alaska need to import NG from out of state?
Because there have been lots of people for the past half century who will do anything to build a natural gas pipeline from the North Slope, and just as many who will do anything to stop it.
Great news! Much needed for south central Alaska!
This should wipe out the need for a $45B natural gas pipeline. Just construct a significantly much cheaper LNG facility ($5B) on the north slope and ship it from there. LNG/icebreaker vessels (3-5 at less than $1B each) can swing by the ‘repurposed’ regasification terminal in Kenai to drop off some to serve south central Alaska and the rest can be exported to Asia.
This financially makes so much more sense than an 800 mile pipeline.
This makes sense. Especially with the new ice breakers on the way.
It doesn’t make any sense to detour 1000 miles or more out of the way of a voyage to Asia, to deplete the shipment going to Asia.
And there are no icebreakers in the near term, except a poorly designed hack from a completely different purpose ship.
Long term there are, IIRC, two icebreakers that are Congresdionally authorized, but that are not designed, maybe not actually funded or contracted, and faaaaar from being operational.
Unless DOGE starts building icebreakers.
Absolutely ?
How about the comment period on these proposals? NO to traversing the waters of the Cook Inlet to get to the Kenai. Where are the environmental statements? Who said the state residents want the facilities in the Kenai and what are these companies trying to cover up? One is in bankruptcy and the others are in such a hurry. Why isn’t the gas line going along the line of the oil pipeline to limit the cost of construction? Why is so much of the work, agreements and plans behind closed doors so the public does not know what the plan, purpose and money is coming from? Who is financing this and is any of the financing, work, money or contracts coming from outside sources against the national security of the United States?
So what is Hilcorp saying here? Why drill and produce in Alaska? It is more profitable to import and supply our customers.
It’s criminal Rino’s like Dunleavy are allowing this when our state is full of gas…
Build the power plant on the north slope and tie into grid… problem solved!
It’s insane the amount of corporate corruption in AK!!
Single point of failure long distance power line? Freezing in the dark? Have you been reading about Quintillion?
‘North Slope Gas’ is like ‘Monorail!’ On The Simpsons.
There are many long power lines that work quite well.
Steve,
Any idea how much a power plant on the slope would cost and how expensive a transmission line to tie into the grid will cost? Any idea on how long the environmental approvals for such an endeavor would take? How about how long it will take to build this power plant on the slope once the environmental approvals are done? Who is going to pay for this power plant and transmission line?
Cheaper than a gas line.
Lots of things are cheaper than a gas line, it doesn’t mean we should throw away billions of dollars on ideas that haven’t been thought out very well.
Electric heat isn’t cheaper than gas heat.
The reason why it failed in the first place is because the LNG is too expensive and no one will buy it.
It’s almost like there is already existing infrastructure to support this concept. In the absence of any other ideas that make any sense follow the one that makes sense and if financially feasible.
Meanwhile, someone mentioned the gas might come from Canada.
‘https://www.cedarlng.com/cedar-lng-announces-positive-final-investment-decision/
Canada is the closest source, unless you’re willing to buy from the Russians. Next would be Mexico.
Any of the above is outright stupidity, considering the fact that we’re literally sitting on trillions of cu. ft. of gas.
But Stupidity R Us…………….
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