Last month, Andeavor (the company formerly known as Tesoro) purchased the Kenai Liquefied Natural Gas facility from ConocoPhillips.
The Nikiski plant, which had previously operated as an LNG export facility since the late 1960s, came at an attractive price: $10 million. This is the believed transaction price for what is a massive waterfront property with potential to make substantial sums of money — an enterprise with a view. Andeavor said it would strengthen the “integrated value chain” and “provide low-cost fuel for our refinery to produce the fuels that consumers in Alaska need to keep their lives moving.”
One hint is that the company allowed an important export license to expire, because Cook Inlet natural gas is not competitive for export. That can only mean one thing: Andeavor plans to import LNG to bring down the cost of its refinery operations, not export it as the plant has traditionally done.