Harvest Alaska to Redevelop Kenai LNG Terminal to Boost Southcentral Gas Supply
(P&GJ) — Harvest Alaska has reached an agreement with Marathon Petroleum Corporation (MPC) and Chugach Electric Association to acquire and redevelop the Kenai LNG Terminal, aiming to address Southcentral Alaska’s energy needs.
The project is expected to provide additional natural gas supplies by 2026, with full-scale operations targeted for 2028.
Under the plan, Harvest will own, develop, and operate the facility, allowing utilities like Chugach and other Railbelt customers to secure additional natural gas to meet market demand. The project repurposes MPC’s existing LNG export infrastructure to help offset potential gas shortages in the region.
The Kenai LNG facility includes dock infrastructure capable of handling vessels carrying up to 2.9 billion cubic feet of natural gas and storage capacity for 2.3 billion cubic feet. Existing approvals from the Federal Energy Regulatory Commission (FERC) position the facility to address immediate energy needs while long-term solutions are developed.
“Harvest has a long history of operating critical oil and gas infrastructure across the state, and this project strengthens 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.”
Chugach Electric, which is in discussions with Harvest to use the facility, sees the project as a crucial step in maintaining reliable energy supplies.
“Providing our members with safe, reliable, and affordable electric service is core to our mission,” Chugach CEO Arthur Miller said. “We’ve been looking at options to fill the gap left by our expiring Hilcorp contract, which ends in 2028. This is a great opportunity to work with experienced partners in Alaska’s gas sector.”
MPC also expressed strong support, emphasizing the terminal’s role in ensuring energy security.
“We believe the Kenai LNG terminal offers the quickest and lowest-cost solution to bring additional natural gas to Southcentral Alaska,” said Bruce Jackman, vice president of MPC’s Kenai Refinery. “A reliable gas supply is critical to refinery operations, and we’re excited about this partnership to help bring new natural gas to the region.”
Harvest plans to advance engineering and design studies in the coming months as it moves forward with the redevelopment.
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