Andeavor has acquired the Kenai Liquefied Natural Gas facility, located in Nikiski, from ConocoPhillips.
The company announced Thursday the LNG facility will be a natural extension of its Alaska operations.
“This acquisition further strengthens our integrated value chain by optimizing our operations in Kenai and providing low-cost fuel for our refinery to produce the fuels that consumers in Alaska need to keep their lives moving,” Scott LaBelle, Andeavor Media Relations, said in an email to the Clarion.
ConocoPhillips began looking for a buyer for the Kenai LNG plant in November 2016. The company in July said it was scaling back operations until it had found one.
The Kenai facility’s last export was in the fall of 2015.
Andeavor says it will work to integrate current employees and operations into the Kenai Refinery facility.
The LNG plant includes a dock and loading facility. It was the only export facility of domestic liquefied natural gas in North America for nearly 50 years.
Selling the LNG plant pretty much completes ConocoPhillips’ exit from the Cook Inlet gas market. Early in 2016 the company sold off its last stake in Inlet gas reserves when it sold its one-third share of the longstanding Beluga River gas field to Anchorage utilities for $152 million.
— Staff and wire reports
