#USA #Anchorage #Harvest Alaska #Chugach Electric #LNG Terminal

Harvest Alaska and Chugach Electric Association Partner to Revitalize Natural Gas Supply

Introduction

In a significant move to strengthen the energy supplies in Southcentral Alaska, Harvest Alaska has announced a collaboration with Marathon Petroleum Corporation (MPC) and Chugach Electric Association. This partnership aims to re-develop the existing Kenai LNG Terminal, laying the groundwork for enhancing the availability of natural gas to meet the increasing market demands.

The Project Overview

The announcement came on February 6, 2025, detailing Harvest's acquisition and developmental plans for the Kenai LNG Terminal, a crucial facility that has been under the auspices of MPC. The objective is to repurpose existing assets, enabling timely delivery of natural gas supplies to Southcentral Alaska as early as 2026, with full-scale operations anticipated by 2028. This project not only aims to meet the current demands but to replace the expiring gas contracts that local suppliers have depended upon for years.

Through this revitalization, Harvest aims to own, develop, and operate the LNG terminal and its associated infrastructure, ensuring that Chugach, MPC, and other Railbelt customers can secure their natural gas needs efficiently. The existing terminal benefits from important legacy infrastructure built to handle a substantial volume of LNG, promoting stability in the gas market of Southcentral Alaska.

Strategic Importance

The Kenai LNG terminal, equipped with dock infrastructure capable of accommodating LNG vessels averaging 138,000 cubic meters, is a legacy project poised for revitalization. By taking advantage of historical capabilities, Harvest and its partners can address the looming short-term natural gas supply challenges faced by the region. Significant onsite storage capacity, combined with existing Federal Energy Regulatory Commission (FERC) approvals, strengthens the terminal's position as a viable solution for immediate energy needs.

Today, the leadership of Harvest has expressed a deep commitment to maintaining Alaska's energy requirements. CEO Jason Rebrook articulated the company’s dedication: “By repurposing Marathon's existing LNG facility, we aim to provide certainty to the Southcentral gas market.” This initiative epitomizes the collaboration between various stakeholders to foster reliable energy availability in the region.

Chugach Electric Association’s Response

Chugach Electric Association’s collaboration with Harvest underlines the regional need for reliable and affordable electricity, especially as existing contracts conclude. The association's CEO, Arthur Miller, emphasized their commitment to their members, stating: “Providing our members with safe, reliable, and affordable electric service is core to our values.” Through this partnership, Chugach hopes to fill the anticipated gaps left by expiring agreements while ensuring that families and businesses continue receiving the energy they rely upon.

Marathon Petroleum’s Support

Marathon Petroleum has also voiced its strong support for the re-development project, reinforcing that it represents the quickest and most cost-effective solution for bolstering natural gas supplies. Bruce Jackman, Vice President of MPC's Kenai Refinery, expressed enthusiasm for this venture, noting its significance for the refinery's operations and the broader community. Having reliable access to natural gas is pivotal for their ongoing operations, showcasing the overlapping interests shared among the involved parties.

Conclusion

The partnership among Harvest Alaska, Chugach Electric Association, and Marathon Petroleum marks a pivotal step forward in securing a more robust energy future for Southcentral Alaska. The re-development of the Kenai LNG Terminal not only represents an initiative to meet current demands but also serves as a strategic measure for long-term energy resilience in the region. Throughout this collaboration, stakeholders are dedicated to ensuring the reliable and timely delivery of natural gas for homeowners and businesses alike, creating a sustainable energy pathway for the future.