Kenai LNG Terminal Set for Re-Development Under Harvest Alaska, Chugach Electric Plan
The facility includes existing dock infrastructure and onsite tankage with an LNG storage capacity of 107,000 m3.
Harvest Alaska, Marathon Petroleum Corp. (MPC), and Chugach Electric Association signed an agreement to deliver additional natural gas to Southcentral Alaska: Harvest acquired the Kenai LNG terminal from an MPC subsidiary to re-develop its assets. Initial LNG deliveries are expected in 2026, with full-scale operations commencing in 2028.
"Harvest has a 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," said Jason Rebrook, Harvest CEO. "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."
Harvest will own and operate the terminal, allowing regional energy providers—such as Chugach, MPC, and other Railbelt customers—to secure additional natural gas supplies to meet increasing market demand. Chugach is currently negotiating with Harvest to leverage the Kenai LNG facility, supporting the energy requirements of Alaskan families, businesses, and ratepayers.
Kenai refinery; image credit: Marathon Petroleum
Re-Development Details
The Kenai re-development project utilizes MPC's LNG export infrastructure to alleviate Southcentral Alaska’s short-term natural gas shortage. MPC’s infrastructure, combined with current approvals from the Federal Energy Regulatory Commission, allows the Kenai LNG facility to satisfy near-term energy needs while long-term alternatives are developed and executed.
"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."
It contains existing dock infrastructure capable of handling LNG vessels with capacity up to 138,000 m3 and onsite tankage with a storage capacity of 107,000 m3.
"Providing our members with safe, reliable, and affordable electric service is core to our values and mission,” said Arthur Miller, Chugach CEO. “We are pleased to have a potential solution to meet the gas needs of our members and at the right time. We've been looking at options to fill the gap left by our expiring Hilcorp contract, which ends on March 31, 2028. 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."
Domestic Gas Pipeline News
In early January 2025, Williams’ Southside Reliability Enhancement (SRE) entered full service on the Transcontinental Pipeline (Transco) in North Carolina and Virginia. The SRE project expands and modernizes Transco to deliver additional natural gas capacity, clean energy, and heating demand for over 2 million regional homes. The following modifications increased contracted pipeline capacity by 423,400 Dth/d:
- A new, all-electric compressor station in Mecklenburg County, VA
- Electric compression upgrade at Station 166 in Pittsylvania County, VA
- Upgrades and enhancements on meter stations in Iredell, Northampton, and Hertford counties in North Carolina
