Marathon Petroleum’s Trans-Foreland Pipeline unit has secured more time to transform the Kenai liquefied natural gas (LNG) export plant in Alaska into an import terminal, reported Reuters.
The Federal Energy Regulatory Commission (FERC) has accepted the request from Trans-Foreland for extending the time to finish the project until December 2025.
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Initially, FERC approved Trans-Foreland’s request for construction of the plant in December 2020.
The US energy regulatory enabled the company to have time until December 2022 to put the plant into service.
Trans-Foreland is yet to take a final investment decision (FID) on construction of the project given that Covid-19 pandemic and the Ukraine-Russia war have marred economic and logistical conditions.
In a previous filing, Trans-Foreland stated: “Uncertainty and volatility in the global LNG market have made it difficult for Trans-Foreland to secure a suitable supply arrangement that would provide the financial certainty necessary for the project.”
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By GlobalDataThe pipeline unit stated that the project “remains commercially viable”, and it is scouting for suitable supplies and observing LNG markets.
Trans-Foreland expects to take FID and proceed with the project once it makes commercial arrangements for appropriate supply.
The company stated that the facility would import up to four tanker loads of LNG annually and utilise its boil-off gas management system to provide imported gas to the nearby Kenai refinery.
Since 2015, Kenai LNG refinery has not exported LNG, although it commenced service in 1969.
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Image: Trans-Foreland has sought for extending the time to finish the project until December 2025. Credit: David Mark from Pixabay .
