IGU, FNG apply for LNG storage certificates

Alan Bailey

Petroleum News

The Interior Gas Utility and Fairbanks Natural Gas have both applied to the Regulatory Commission of Alaska for modifications to their certificates of public convenience and necessity, to allow liquefied natural gas storage services using a new LNG storage tank being built in Fairbanks. The new 5.25 million gallon tank comes as part of the Interior Energy Project, a project to bring an expanded supply of gas to the Fairbanks region.

Under the IEP, with Alaska Industrial Development and Export Authority financial assistance, IGU has purchased FNG, the Titan LNG plant near Point Mackenzie and a trucking operation to ship LNG from the Titan plant to Fairbanks. The idea is that IGU and FNG form a combined gas utility serving the Fairbanks region. The storage tank, being constructed at a cost of $54 million and supported by a state tax credit, is expected to be completed around the fall of this year. The tank will support increased supplies of LNG to Fairbanks. It will also enable the warehousing of summer produced Cook Inlet gas, to expand the availability of gas for new Fairbanks gas consumers.

IGU is currently evaluating two options for increasing LNG supplies for Fairbanks: the expansion of the Titan plant and the construction of a new LNG facility by industrial manufacturing company Siemens. The utility’s board is in the process of commissioning front end engineering and design work for the Titan expansion and negotiating with Siemens over the potential terms for an LNG supply from a Siemens constructed plant.

- ALAN BAILEY