Hilcorp enters LNG market with Point MacKenzie acquisition

Hilcorp Energy has agreed to buy the Point MacKenzie LNG plant making this the first step for Hilcorp into LNG.

The plant is a supplier to Fairbanks Natural Gas whose President and CEO Dan Britton said the idea was born from discussions between two companies on securing longer-term gas supplies, according to Alaska Journal of Commerce.

Point MacKenzie LNG plant is operated by Titan Alaska LNG. Hilcorp has a current supply deal with the plant through 2018.

Hilcorp Alaska Vice President Kurt Gibson said the sale was agreed and signed several days ago, but no financial details were disclosed.

Hilcorp’s unit, Harvest Alaska will operate the plant that has the peak production capacity of just above 1 bcf of gas per year, but Hilcorp has already put forward plans to expand the plant.

A 10-year LNG supply agreement for up to 0.95 bcf of gas per year has also been finalized.

According to Hilcorp spokeswoman Lori Nelson, expansion plans will not be formalized until the sale is approved by the Regulatory Commission of Alaska.

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LNG World News Staff; Image: FNG