Houston-based Harvest Midstream is joining forces with Alaska’s Interior Gas Utility (IGU) to construct a small LNG plant and truck loading facility near Deadhorse, Alaska.
In that regard, the two firms signed a long-term supply agreement from the natural gas treating and liquefaction facility, according to a statement by Harvest issued last week.
The facility would be capable of producing 150,000 gallons of LNG per day with an ability to expand, Harvest said.
The amount of feed gas for the facility would be about 15 million cubic feet per day and would be supplied from existing production at Prudhoe Bay, the firm said.
After processing at the facility, the LNG would be transported by truck to Fairbanks and distributed through IGU’s existing infrastructure, according to Harvest.
Pending regulatory approvals, Harvest expects to start construction of the facility in the summer of 2023 and to launch operations in late 2024.
According to its website, utility IGU already operates a liquefaction facility, Titan, located in Cook Inlet.
On the other hand, privately held midstream service provider Harvey operates various crude oil and natural gas gathering, storage, and transportation assets across the United States.
Back in 2020, the firm purchased BP’s upstream assets in Alaska, including a 49 percent interest in the Trans-Alaska Pipeline System (TAPS) as well as 49 percent of Alyeska Service Company.
Alaska hosts the closed Kenai LNG export plant that Marathon’s unit Trans-Foreland Pipeline aims to bring back online as an import facility while state-owned Alaska Gasline Development Corporation is developing the Alaska LNG export project.