|
Trans-Foreland applies to FERCfor LNG terminal modification
Alan Bailey for Petroleum News
On Jan. 9 Trans-Foreland Pipeline Co. filed an application with the Federal Energy Regulatory Commission for approval of modifications to the company's liquefied natural gas terminal at Nikiski on the Kenai Peninsula. The modifications are required to enable the terminal to import liquefied natural gas, to augment gas supplies for gas and electricity utilities in Southcentral Alaska. The utilities are facing pending shortfalls in gas supplies from gas and oil fields in the Cook Inlet basin.
During the heyday of Cook Inlet gas production, the terminal was used to export LNG to Japan. LNG exporting ended in 2016, since when the terminal has been in warm shutdown. In 2020 FERC authorized Trans-Foreland, then a Marathon subsidiary, to convert the terminal to an LNG import facility, for the supply of gas for use as a fuel at Marathon's Nikiski oil refinery. However, the terminal conversion did not proceed.
Acquisition by Hilcorp In November 2025 Hilcorp Alaska's pipeline subsidiary Harvest Midstream acquired Trans-Foreland from Marathon, as part of a plan to instigate LNG importing in conjunction with a strategy to use imported LNG to bolster gas supplies for Anchorage based Chugach Electric Association. Chugach Electric has said that its firm gas supply contract with Hilcorp expires on March 31, 2028. Meantime Hilcorp has been proceeding with the commercial development of the Nikiski terminal for LNG importing, Trans-Foreland told FERC.
Trans-Foreland is asking for FERC approval by July 31, 2026, to enable the enhanced facility to go into operation as soon as possible.
More capacity needed In its FERC application Trans-Foreland told the commission that the earlier design for converting the Nikiski terminal for LNG importing, approved by FERC, would not enable sufficient import capacity to meet the anticipated gas demand. Consequently, Trans-Foreland has filed this new application, specifying what modifications will be needed to the terminal and asking for FERC approval of the expanded project.
The project expansion involves the installation of higher efficiency facilities for LNG vaporization, additional compressors for dealing with boil-off gas from the LNG and the installation of LNG recirculation pumps.
Approval sought for equipment installation Trans-Foreland seeks FERC approval for the installation of certain specific items of equipment in the terminal: six high-pressure cryogenic vertical pumps and two submerged combustion vaporizers. The company also wants to substitute some specific LNG boil off gas equipment for the equivalent equipment specified in the earlier terminal conversion plan.
The FERC application says that the converted terminal will use the existing LNG transfer system at the terminal's marine berth, to enable LNG to flow directly from an LNG carrier to onshore LNG storage tanks. A new LNG circulation pump would be installed in a pump pit near the storage tanks.
Some other ancillary facility upgrades will be needed, the application says. And all construction will take place within the existing terminal site.
Send out capacity of 20 billion cubic feet per year The terminal expansion project will enable the terminal to receive up to 0.4 million metric tons of LNG per year, with a send out capacity of up to 20 billion cubic feet of gas per year, the application says. And the increased output capacity of the terminal will be able to support Southcentral utilities through existing pipelines that connect the terminal to the regional gas pipeline network. The terminal, as it exists, has marine dock facilities, LNG storage tanks and related support architecture, the application says.
The application also comments that the average gas demand from the utilities is estimated at 70 billion cubic feet per year. The first gas supply deficit from the Cook Inlet gas fields is anticipated as soon as 2027, with the deficit forecast to reach 40 billion cubic feet per year by the early 2030s. the report says.
Additional Glenfarne LNG terminal In addition to the plans for converting the existing LNG terminal, Enstar Natural Gas is working with Glenfarne Alaska LNG on a plan to build a completely new LNG import terminal, also at Nikiski. Enstar has indicated that the converted existing LNG terminal will not have sufficient capacity to meet other utilities' needs, including Enstar's needs, in addition to the needs of Chugach Electric. On the other hand, Chugach Electric will require imported LNG before the Glenfarne facility may become operational.
Glenfarne is planning to build a gas pipeline from the North Slope to Southcentral Alaska. The concept is that the pipeline would ultimately connect to Glenfarne's Nikiski LNG terminal, which would be converted into an LNG export terminal.
--ALAN BAILEY
|
