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FERC issues 2nd delay for Trans-Foreland
Proposal would bring Kenai LNG Plant out of warm shutdown to provide natural gas for use at adjacent refinery, using imported LNG Kristen Nelson Petroleum News
The Federal Energy Regulatory Commission issued a notice April 8 suspending the environmental review schedule for Trans-Foreland Pipeline Co.’s application for the Kenai LNG Cool Down Project in Nikiski.
FERC said a revised schedule, issued Dec. 12, identified an April 24 environmental assessment issuance date, based on Trans-Foreland providing complete and timely responses to data requests.
FERC’s original schedule called for release of an EA for the project Dec. 13, with the 90-day federal authorization decision deadline March 12.
FERC said that in a March 18 response to a data request from FERC staff, Trans-Foreland said it was pursuing an equivalency determination from the U.S. Department of Transportation’s Pipeline and Hazardous Material Safety Administration pertaining to the trim vaporizer the company proposes to locate within the liquefied natural gas storage tank impoundment area.
“Because the PHMSA equivalency determination is necessary for completion of the EA, the Commission will suspend the environmental review schedule for the project,” FERC said, with an additional revised EA schedule to be issued once staff has reviewed the PHMSA equivalency determination.
This is not a suspension of staff work on the EA, FERC said; review will continue based on information filed to date.
PHMSA did issue a letter of determination in late March, but that determination was for project siting. FERC said it did not address the issue of the trim vaporizer.
Goal fuel gas for refinery In an April 2019 project description, the company said Trans-Foreland Pipeline Co. owns the Kenai LNG Plant, which is operated by Trans-Foreland’s affiliate Tesoro Logistics GP. Trans-Foreland is a wholly owned subsidiary of Tesoro Alaska Co., formerly Andeavor, and since 2018 part of Marathon Petroleum Corp.
The project includes installation, construction and operation of a new boil-off-gas booster compressor unit, trim vaporizers, ancillary facilities, additional LNG transfer system valves and equipment to manage existing BOG facilities.
The project will allow the Kenai LNG facility to provide up to 7 million standard cubic feet per day of natural gas to the adjacent Kenai refinery.
Export from the Kenai LNG facility ceased in 2015 as Cook Inlet natural gas supplies declined and the international LNG industry grew.
The Kenai LNG plant was the first in the nation to export LNG when it began operation in the late 1960s.
In 2018 ConocoPhillips, then the sole owner of the LNG plant, sold it to Andeavor, formerly called Tesoro, operator of the nearby oil refinery. Andeavor merged with Marathon Petroleum Corp. in 2018 under the Marathon Petroleum name.
Trans-Foreland or an affiliate will apply to the Department of Energy’s Office of Fossil Energy for authorization to import LNG before the project enters service.
A year ago, the company said that pending regulatory approval it expected to begin construction in the third quarter of 2019 and have the project in-service in the fourth quarter of 2020.
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