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Providing coverage of Alaska and northern Canada's oil and gas industry
April 2024

Vol. 29, No.14 Week of April 07, 2024

Oil patch insider: Nutrien APDES permit under consideration; Jim White clarifies

Kay Cashman

Petroleum News

Amidst chatter about importing LNG to address the coming natural gas shortage in Southcentral Alaska, on April 10 the Alaska Department of Environmental Conservation is concluding a 10-day preliminary applicant review of an Alaska Pollutant Discharge Elimination System, or APDES, individual permit to Nutrien US LLC for the North Complex of the company's Kenai Nitrogen Operations.

ADEC said Nutrien is considering a project to resume operation of the North Complex in the next 5 years which would include ammonia plants #1 and #4 and urea plant #5. Exactly what that project will be was not described in the paperwork.

During the effective period of the permit, Nutrien is authorized to discharge specified pollutants into the Cook Inlet.

The Nutrien Kenai Nitrogen Operations, or KNO, complex is a large nitrogen manufacturing fertilizer complex consisting of two ammonia plants, two urea plants, two associated utility plants, and a loading wharf.

The complex is located along the bluff above Cook Inlet at Mile 21 of the Kenai Spur Highway, near Nikiski and 10 miles north of Kenai. KNO occupies approximately 125 acres in an industrial area.

Ammonia plant #1, urea plant #2, and utility plant #3 (South Complex) were originally built in 1966-1968. KNO was expanded in 1977-1978 by the addition of the North Complex. The last urea loading occurred in December 2007, followed by the final ammonia shipment in April 2008, afterward the loading wharf was taken out of service; putting it back in service will likely involve federal permitting.

Due to the current lack of availability of natural gas, KNO continues to be non-operational and has no discharge.

Following the close of the 10-day applicant review period, DEC will prepare a draft permit and fact sheet for a formal 30-day public review period. Public comments will be accepted during the formal public review period.

Clarification from Jim White

After the story "Son carrying on Jim White's legacy" in the March 31 issue of Petroleum News was released, the younger Jim White sent Petroleum News a clarification about his father's idea for how Alaskans could solve the current natural gas shortage.

"Regarding royalties for CIRI and Mental Health Land Trust: They are ones that I referred to as key stakeholders, not the surrounding landowners," he wrote.

"The idea would be for CIRI and the MHLT to get the full 12.5% royalty, and the surrounding landowners" to receive the overriding royalty on top of that," White said.

Help celebrate haul road's 50th

Per an April 2 email from The Alliance, in preparation for the April 29 celebration of the 50th anniversary of the start of haul road construction, the Alaska Oil & Gas Historical Society is looking for stories and photos from the historic endeavor.

Have items to share? Contact Rebecca Logan: [email protected]

Save the Date: Monday, April 29, 5-7 p.m. at the Petroleum Club of Anchorage. No RSVP Required.

BUT do not wait until the April 29 celebration. The Historical Society will not be collecting items at the event -- if you have something to share, please contact Rebecca Logan soon.

--Oil Patch Insider was compiled by Kay Cashman






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