Page 5 - GLNG Week 34 2022

GLNG AMERICAS GLNG

FERC gives Marathon more time to

convert Kenai LNG to imports

TERMINALS THE US Federal Energy Regulatory Commis- Trans-Foreland anticipates reaching an FID on
sion (FERC) has granted Trans-Foreland Pipe- the conversion.
line, a unit of Marathon Petroleum, more time Once converted to imports, the facility would
to convert the mothballed Kenai LNG export receive up to four tankers per year of LNG, and
terminal in Alaska to imports. The regulator’s its boil-off gas management system would be
approval of Trans-Foreland’s request gives the used to deliver gas to Marathon’s adjacent Kenai
company until December 2025 to complete the refinery. Plans for the conversion call for the res-
conversion. toration of two storage tanks at the LNG termi-
The company initially had until December nal, which have a capacity of 35,000 cubic metres
2022 to execute the project, having received each, as well as other equipment.
approval for the conversion in December 2020. The Kenai facility has not operated since
However, the project has since been beset by 2015, having previously served customers pri-
delays. Indeed, Trans-Foreland now says that it marily in Japan. The push to convert it comes as
has yet to make a final investment decision (FID) a separate project is being advanced to build an
because the coronavirus (COVID-19) pandemic LNG export terminal in Alaska. The US Depart-
and the war in Ukraine have both contributed to ment of Energy (DoE) published a draft supple-
poorer economic and logistical conditions. mental environmental impact statement (EIS)
“Uncertainty and volatility in the global LNG on the Alaska LNG project in June, concluding
market have made it difficult for Trans-Foreland that building that proposed facility would have
to secure a suitable supply arrangement that no net impact on greenhouse gas (GHG) emis-
would provide the financial certainty necessary sions. However, it is still uncertain whether the
for the project,” the company said in an earlier project will reach FID, with the state’s Alaska
filing. However, it maintains that the project is Gasline Development Corp. (AGDC) seeking
still commercially viable and says it is actively to place it under private ownership before any
seeking “suitable” supplies. further steps are taken.™
Once these supplies have been secured,

Week 34 26•August•2022 www. NEWSBASE .com P5