San Antonio-based Andeavor has acquired the Kenai liquefied natural gas (LNG) facility in Alaska from ConocoPhillips, which had been trying to sell the facility for more than a year.
The sale and transfer of operatorship took place Jan. 31, according to ConocoPhillips. Financial details of the transaction were not released.
Andeavor, formerly Tesoro Corp., operates 10 refineries with a combined capacity of 1.2 million b/d in the Midcontinent and western United States, including the Kenai Refinery on the Cook Inlet.
"This acquisition further strengthens our integrated value chain by optimizing our operations in Kenai and providing low-cost fuel for our refinery to produce the fuels that consumers in Alaska need to keep their lives moving," Andeavor spokesman Scott LaBelle told NGI.
The Kenai LNG export facility was the first, and for a long time, the only export plant in the United States. Last year, ConocoPhillips said it would shutter operations at the Kenai facility until market conditions improved. The plant was put up for sale in November 2016. It had been idled for more than two years, with the last export in late 2015, as depressed global LNG prices reduced demand.
In 2016, LNG exports from the Kenai facility were reauthorized by the U.S. Department of Energy. That export license is set to expire this month.
"With the sale, ConocoPhillips Alaska is able to direct its full attention to our North Slope operations, where we are making substantial investments in new projects," ConocoPhillips spokeswoman Christina Kuhl told NGI.
Last week ConocoPhillips said it would spend $400 million on bolt-on leases in Alaska in a deal to consolidate its western North Slope position.
It's been an eventful winter for Andeavor. Last month, the company agreed to buy Rangeland Energy II LLC, which oversees a bundle of energy assets in the Permian Basin. The acquisition is set to close by the end of March, pending regulatory approval. Financial details were not disclosed.
The Alaska Gasline Development Corp., which took over the proposed Alaska LNG Project in 2016 to pipe gas to Asian markets, at one time was said to be interested in taking over Kenai LNG.