Harvest to Redevelop Kenai LNG Terminal for Energy Imports
Photo Credit: Raul_Mellado | Envato
Harvest Alaska is acquiring the Kenai LNG Terminal, with the goal of repurposing the idled export assets into a facility to import liquified natural gas for the Southcentral energy market. In a joint announcement with Chugach Electric Association and Marathon Petroleum Corporation, the parent company of the terminal’s current owner, the first LNG could be delivered sometime next year, ahead of full-scale operations in 2028.
Marathon Ends, Harvest Begins
Harvest Alaska, an affiliate of Harvest Midstream Company, operates pipeline systems in Cook Inlet and the North Slope, including a 49 percent ownership stake in the Trans-Alaska Pipeline System (TAPS) and Alyeska Pipeline Service Company acquired from BP in 2020.
“Harvest has a long history of operating critical oil and gas infrastructure across the state, and this announcement furthers our commitment to ensuring Alaska has the energy it needs,” says Harvest CEO Jason Rebrook. “By repurposing Marathon’s existing LNG facility, we aim to provide certainty to the Southcentral gas market while meeting the needs of Railbelt utilities. We are proud to collaborate with Marathon, Chugach Electric, and other Southcentral utilities to bring this project online to ensure the reliable delivery of natural gas in a timely and cost-efficient manner.”
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February 2025
The project leverages legacy LNG export infrastructure, including a dock capable of handling LNG vessels up to 2.9 billion cubic feet of natural gas and onsite tankage with a storage capacity of 2.3 billion cubic feet. Thanks to existing Federal Energy Regulatory Commission approvals, Harvest would own, develop, and operate the LNG terminal, allowing Chugach Electric and other Railbelt customers to secure additional natural gas supplies.
“Providing our members with safe, reliable, and affordable electric service is core to our values and mission. We are pleased to have a potential solution to meet the gas needs of our members and at the right time,” says Chugach Electric CEO Arthur Miller. “We’ve been looking at options to fill the gap left by our expiring Hilcorp contract, which ends on March 31, 2028. This is a great opportunity to work with partners who have extensive experience and knowledge of gas operations in Alaska. We look forward to ongoing discussions and analysis with Harvest Alaska as they progress the front-end engineering and design study over the next several months.”
Marathon expressed strong support for the project and noted the benefits it can provide to the region.
“We believe the Kenai LNG terminal offers the quickest and lowest-cost solution to bring additional natural gas to Southcentral Alaska and beyond,” says Bruce Jackman, Vice President of Marathon’s Kenai Refinery. “Our Kenai refinery employees work around the clock to provide gasoline, diesel, and jet fuel to their fellow Alaskans, and a reliable supply of natural gas is critical to the refinery’s operations. We’re excited about this partnership with Harvest and Chugach to work toward bringing new natural gas to the region.”
The Kenai LNG terminal was one of the first in the United States when it began operating in 1969. Exports continued until 2015, when Cook Inlet gas supplies struggled to meet local demand.
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Architecture & Engineering + Interior
February 2025
In our February 2025 issue, we highlight how architecture and engineering improve every facet of our daily lives, from increasing the availability and affordability of housing to building small businesses and improving community safety. Projects like these are helmed by Alaska’s exceptional professionals, including the 2024 Anchorage Engineer of the Year Nominees. In the Interior, Red Dog Mine and the Fountainhead Antique Auto Museum are both making big moves. Enjoy!