LNG

AK LNG

Since the state announced Nikiski as the chosen site for its liquefied natural gas plant project about six years ago, Kenai Peninsula residents have had an ear to the ground for developments. The project would use an 807-mile pipeline from the North Slope to deliver natural gas to a plant in Nikiski, where it would be liquefied and shipped out to international markets, all for a price tag of about $45 billion.

Since 2017, the state has been heading up the project alone through the Alaska Gasline Development Corporation. The project partners, including ConocoPhillips, BP and ExxonMobil, shied away from it after a number of international LNG plants came online, pushing down prices and making Alaska’s project too expensive to be competitive. But the state has pressed on, gathering permits and information. On Thursday, the Federal Energy Regulatory Commission gave the state the green light to build and operate the project.

Now it’s just a matter of how to pay for it. This is the last year the state is going to go it alone —it’s either find other sponsors or sponsors or sell the assets.

Photo ConocoPhillips

  The mothballed natural gas liquefaction plant in Nikiski has a new owner, changing hands officially a week ago. ConocoPhillips sold its Kenai LNG plant to its industrial park neighbor, Andeavor, which operates the crude oil refinery across the street. 

The price of the sale was not disclosed. Nor were Andeavor’s plans for the nearly 50-year-old facility. A quote from Andeavor spokesman Scott LaBelle in an announcement caught the eye of former Kenai Peninsula Borough mayoral chief of staff, Larry Persily, an expert on natural gas issues.