Marathon Petroleum evaluating strategic options for Alaska LNG facility as part of ongoing contributions to the region’s long-term potential

Business News

Kenai, Alaska


Marathon Petroleum’s refinery in Kenai, Alaska, has been a fixture in the community for over 50 years, and the company is working to continue creating shared value in the region long into the future. That includes not only MPC’s ongoing investments in education, environmental programs and assistance to those in need, but also enhancing our refinery’s ability to meet the region’s energy needs efficiently.

With that objective in mind, Marathon is evaluating strategic options for its liquefied natural gas (LNG) facility in Kenai, which is adjacent to the company’s refinery. “The options we’re looking at include advancement of an LNG import conversion project authorized by the Federal Energy Regulatory Commission, along with a possible second-phase, larger-scale LNG import and re-gasification facility,” said Bruce Jackman, general manager of the Kenai refinery. “Kenai LNG is an important part of our infrastructure here, and we’re excited to be looking at these potential projects.”

Options for the second phase, which could help address forecast natural gas needs in the Cook Inlet region, could also include strategic partnerships with other companies involved in LNG transportation or natural gas distribution.

According to David Heppner, senior vice president of Marathon’s Strategy and Business Development organization, the evaluation of Kenai LNG is part of the company’s ongoing commitment to portfolio optimization and improving commercial performance. “In light of natural gas producers’ projections for large natural gas shortfalls in the Cook Inlet region, our Kenai LNG facility could offer a cost-effective solution to supply long-term, affordable natural gas to the area and our Kenai refinery,” Heppner said.

Jackman noted that due to Alaska’s unique geographic location, Marathon’s Kenai refinery is critical to the state. “From being the only gasoline producer in the state, to providing jet fuel to the Ted Stevens International Airport and providing diesel fuel to emergency responders, our 240 employees work around the clock to fuel our state,” he said. “A reliable supply of natural gas is critical to the refinery’s operations, and the Kenai LNG projects we’re evaluating could make tremendous contributions to our long-term success.”

The Kenai LNG facility exported LNG until 2015. In 2020, the Federal Energy Regulatory Commission authorized modifying the facility for LNG import operations.

For more information, contact Brian Akin: [email protected]