Hilcorp To Purchase Port MacKenzie LNG Plant

Cook Inlet oil and gas producer Hilcorp has announced purchase of an LNG plant at Port MacKenzie. The plant, now owned by Titan Alaska LNG, supplies Fairbanks Natural Gas.

Fairbanks Natural Gas President Dan Britton says the sale grew from discussions between Fairbanks Natural Gas and Hilcorp about a longer-term gas supply.

Hilcorp spokeswoman Lori Nelson says the Regulatory Commission of Alaska must approve the sale.

“The transaction is definitely dependent on all the necessary and regulatory approvals, so this just marks the agreement for and desire for Hilcorp to purchase that facility.”

Nelson says Hilcorp supplies gas to Titan’s plant and has a contract through 2018. She says Hilcorp plans to expand the facility in the future, and to expand its capacity for transmission of gas to Interior markets. Fairbanks Natural Gas serves about 1,100 mixed residential and commercial customers in the core of Fairbanks.

“It actually opens up great opportunity for us to expand the market here in Alaska. As you know, we have been investing hundreds of millions in Cook Inlet to up that production, and with a closed market and limited availability for export, growing our market within Alaska is a natural step for us, and one that also serves the Interior residents as well.”

Nelson says she has no details on the agreed upon price of the purchase. Hilcorp recently purchased four North Slope fields formerly owned by BP. Nelson says the two transactions are not related.