"The project is designed to repurpose existing assets to enable the timely delivery of additional natural gas supplies to the Southcentral market as early as 2026, with full-scale operations beginning as early as 2028," the companies said.

The existing facility includes dock infrastructure and onsite tankage, and combined with existing Federal Energy Regulatory Commission approvals, "positions the facility to meet near-term energy needs while longer-term alternatives are developed."

"By repurposing Marathon- s existing LNG facility, we aim to provide certainty to the Southcentral gas market while meeting the needs of Railbelt utilities," Harvest Alaska CEO Jason Rebrook said.

Chugach said it is in discussions with Harvest to use the facility.

Chugach CEO Arthur Miller said the utility is "pleased to have a potential solution to meet the gas needs of our members and at the right time." He said Chugach's existing gas supply contract with Hilcorp expires March 31, 2028.

Bruce Jackman, vice president of Marathon's Kenai Refinery said Marathon believes "the Kenai LNG terminal offers the quickest and lowest-cost solution to bring additional natural gas to Southcentral Alaska and beyond," adding that "reliable supply of natural gas is critical to the refinery's operations."

--Petroleum News