FERC to prepare EA on Nikiski LNG project

Kristen Nelson

Petroleum News

The Federal Energy Regulatory Commission said May 13 that it will prepare an environmental assessment for the proposed Kenai LNG Cool Down Project (see story in May 2 issue).

The LNG plant, built by Phillips and Marathon in the 1960s, is now operated by Trans-Foreland Pipeline Co., which owns 100% interest in Kenai LNG LLC, the company which owns the Nikiski LNG facility and export terminal. Trans-Foreland is a wholly owned subsidiary of Tesoro Alaska Co., now called Andeavor, which also operates the nearby Nikiski oil refinery. ConocoPhillips, then 100% owner of the Nikiski LNG facility, sold it to Andeavor in 2018.

FERC said Trans-Foreland is proposing the addition of a 1,000 horsepower electric-driven boil-off-gas, BOG, booster compressor unit, trim vaporizers, ancillary facilities, additional LNG transfer system valves and equipment to manage existing BOG facilities “to facilitate the import of LNG to cool down the existing LNG storage tanks and associated LNG facilities,” allowing the LNG facility to provide up to 7 million standard cubic feet per day of natural gas to the Kenai Refinery.

Public comments to FERC close June 12.

ExxonMobil Alaska LNG LLC and BP Alaska LNG LLC have both moved to intervene in the FERC docket, separately citing ownership of property adjacent to the Kenai LNG facility, property the companies acquired as the site for the proposed LNG plant to process North Slope natural gas.

- KRISTEN NELSON