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FERC Authorizes Marathon's (MPC) Kenai LNG Import Project

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The U.S. Federal Energy Regulatory Commission (“FERC”) sanctioneda plan by Marathon Petroleum Corporation's (MPC - Free Report) subsidiary, Trans-Foreland Pipeline Co LLC, unit to convert the Kenai liquefied natural gas export plant in Alaska into an import terminal. FERC has given two years to Trans-Foreland to put the planned project into service.

The Kenai LNG Terminal entered service in 1969. It presently has a 0.2-billion cubic feet per day (Bcf/day) liquefaction unit, a pre-treatment facility, a boil-off gas management system, three 35,000-cubic-meter LNG storage tanks, ancillary facilities and a marine loading/unloading dock. The terminal has not exported LNG since 2015.

Trans-Foreland intends to make various arrangements and construct a number of mechanisms in order to transform the Kenai LNG plant into an import terminal. Some of these comprise a skid-mounted, electric-powered trim LNG vaporizer module, consisting of 10 trim LNG vaporizers; a 1,000 horsepower (hp), electric-driven boiloff gas booster compressor; a vaporizer feed pump; an LNG circulation pump; 12 new valves and minor piping rearrangements; and appurtenant facilities. All these work will take place within the periphery of the Kenai LNG Terminal.

Post conversion of the facility, Trans-Foreland is expected to import up to four tanker loads of LNG annually. It will use its boil-off gas management system to deliver around 3,500-7,000 million British thermal units (MMBtu) per day of imported gas to the Kenai Refinery. Trans-Foreland’s import terminal will have a yearly capacity of 1.825 million MMBtu.

About Marathon Petroleum

Findlay, OH-based Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The company, in its current form, came into existence following the 2011 spin-off of Houston, TX-based Marathon Oil Corporation’s refining/sales business into a separate, independent and publicly-traded entity.

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