Andeavor buys Kenai LNG Facility
Andeavor has acquired the Kenai Liquefied Natural Gas facility from ConocoPhillips.
The company formerly known as Tesoro announced Thursday the LNG facility will be a natural extension of its Alaska operations.
ConocoPhillips in November 2016 announced that it would sell the Kenai LNG plant. The company in July said it was scaling back operations until it had found a buyer.
The Kenai facility has been idle for more than two years, with its last export in the fall of 2015, as depressed global LNG prices have simply pushed it out of the market.
Andeavor says the LNG facility will strengthen its integrated value chain by providing low-cost fuel for its petroleum refinery.
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.