Latest news with #Chugach
Yahoo
07-02-2025
- Business
- Yahoo
Hilcorp-linked company announces deal to build natural gas import facility on Kenai Peninsula
A gas ring is seen on a stove powered by natural gas. (Photo Illustration by) An energy firm affiliated with Hilcorp Alaska will buy an unused natural gas export terminal on the Kenai Peninsula and convert it to an import facility, the company announced Thursday. The deal is significant for Southcentral Alaska, which is expected to run short of available, domestically produced natural gas before the end of the decade. The new agreement promises to bring imported gas to the region years sooner than alternative proposals. Under the terms of the agreement, Harvest Midstream — a company owned by Jeff Hildebrand, the owner of Hilcorp — will buy the terminal from Marathon Petroleum. The terminal has not operated since 2011, but Marathon had begun preliminary work to convert it into an import facility, going so far as to obtain a federal permit to do so. The cost of the deal was not disclosed on Thursday. Marathon will continue to own and operate a nearby oil refinery, which will become a customer for the import terminal's gas. Chugach Electric Association, the largest electric cooperative in Southcentral Alaska, said in Thursday's announcement that it is also interested in buying gas through the terminal. Julie Hasquet, a spokesperson for Chugach, said the utility needs to have a firm contract to buy natural gas at the end of the first quarter of 2028. Harvest, which expects to begin delivering some gas in 2026, is the first to meet Chugach's deadline. 'We're just excited that this is an opportunity to get gas when our customers need it,' she said. Harvest's deal is the second involving a proposed import terminal in recent months. In December, Enstar signed an agreement with Glenfarne Energy Transition LLC to develop an import terminal on the Kenai Peninsula. That terminal would be located at a site envisioned for the export end of the proposed trans-Alaska natural gas pipeline. That import project isn't expected to become operational until the end of 2029, however. That's beyond the end of most Southcentral utilities' natural gas contracts with Hilcorp, the current No. 1 supplier. A trans-Alaska natural gas pipeline isn't expected to become operational until 2031 at the earliest, and that project still lacks firm financing. Kenai Peninsula Borough Mayor Peter Micciche said timing isn't the only thing to consider — price for the consumer is also a factor. Until both the Enstar and Harvest facilities — and AKLNG — go through engineering studies, there won't be any estimates on how much their gas will cost. Global markets will also be a factor. 'I'm going to hold off until I see their determinations on a cost structure. … One of them will rise to the top,' he said. Sen. Cathy Giessel, R-Anchorage, said she has concerns about Alaska's increasing reliance on Hilcorp. 'It feels like we're being dominated by one company. It's concerning,' she said. Giessel said she's also concerned by the fact that Chugach appears to have broken away from working with other utilities collaboratively. Rep. Cathy Tilton, R-Wasilla, said that Alaskans would prefer to drill for their own natural gas, but there is no alternative to imports in the short term. 'I would love to come out and say we will have no imported gas. We feel that way and the public feels that way,' Tilton said. 'But, we have to look at short-term, mid-term and long-term solutions, and if, unfortunately, we have to bring something in in the short term, that might be what we have to do to get us to a mid-term and long-term solution.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
06-02-2025
- Business
- Yahoo
Harvest Alaska and Chugach Electric Association Announce Plans to Bolster Southcentral Gas Supplies Through Re-Development of Kenai Peninsula LNG Terminal
ANCHORAGE, Alaska, Feb. 6, 2025 /PRNewswire/ -- Today, Harvest Alaska (Harvest), announced an agreement with Marathon Petroleum Corporation (MPC) and Chugach Electric Association (Chugach) to bolster Southcentral Alaska's energy supplies through Harvest's acquisition and re-development of the existing Kenai LNG Terminal, currently owned by a subsidiary of MPC. The project is designed to repurpose existing assets to enable the timely delivery of additional natural gas supplies to the Southcentral market as early as 2026, with full-scale operations beginning as early as 2028. Under the proposal, Harvest would own, develop and operate the LNG terminal and infrastructure – allowing Chugach, MPC and any other Railbelt customers to secure additional natural gas supplies to help meet the market demand. The project leverages MPC's legacy LNG export infrastructure to alleviate the potential short-term natural gas shortage facing Southcentral Alaska. The facility includes existing dock infrastructure which was historically capable of handling LNG vessels up to 138,000 cubic meters (approximately 2.9 billion cubic feet of natural gas) and onsite tankage with a storage capacity of 107,000 cubic meters (approximately 2.3 billion cubic feet of natural gas). This infrastructure, combined with existing FERC approvals, positions the facility to meet near-term energy needs while longer-term alternatives are developed. "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," Harvest CEO Jason Rebrook said. "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 timely and cost-efficient manner." Chugach, which is in discussions with Harvest to utilize the Kenai LNG facility, emphasized the importance of this partnership in addressing the energy needs of Southcentral families, businesses and ratepayers. "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," said Chugach 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." MPC 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," said Bruce Jackman, Vice President of MPC'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." For more information, contact: About Chugach Electric Association: Chugach is the largest member-owned electric cooperative in Alaska, serving over 91,000 members at over 113,000 metered locations. The service territory extends from Anchorage to the northern Kenai Peninsula, westward to Tyonek and eastward to Whittier. Chugach originated as an Alaska electric cooperative in 1948, designed exclusively to serve its members. For further information about Chugach, please contact Julie Hasquet: Email: Julie_Hasquet@ Phone: (907) 717-9619 About Harvest Alaska: Harvest Alaska, an affiliate of Harvest Midstream Company, is a privately held midstream services provider based in Anchorage, AK. Harvest Alaska currently operates pipeline systems in Alaska's Cook Inlet and on the North Slope, including a 49% ownership stake in the Trans-Alaska Pipeline System (TAPS) and Alyeska Service Company. Harvest Midstream operates crude oil and natural gas gathering, storage, transportation, treatment and terminalling assets across the Lower 48 and Alaska. To learn more visit For further information about Harvest, please contact: Email: media@ View original content to download multimedia: SOURCE Harvest Midstream
