FID - Marathon Petroleum granted more time to build Alaska LNG import project

The U.S. Federal Energy Regulatory Commission on Tuesday approved a request from Marathon Petroleum ( NYSE: MPC ) for more time to convert the Kenai liquefied natural gas export plant in Alaska into an import terminal.

FERC first approved the request from the Trans-Foreland Pipeline unit to build the plant in December 2020, then gave the company until December 2022 to place it into service; the latest extension stretches the project until December 2025.

Marathon ( MPC ) said the project "remains commercially viable," but it has not made a final investment decision to build the project because COVID-19 and the war in Ukraine have worsened economic and logistical conditions.

Once Trans-Foreland makes commercial arrangements for suitable supply, the company said it expects to make its FID and move forward with the project.

Marathon Petroleum ( MPC ) reported strong Q2 earnings highlighted by a surge in refining profitability, but "the recent pullback in oil and gas prices suggests a softer earnings environment into the second half of the year," BOOX Research writes in an analysis published recently on Seeking Alpha .

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