Harvest Midstream (Harvest) announced the execution of a long-term agreement with Interior Gas Utility (IGU) to construct a natural gas treating, liquification, and truck loading facility near Deadhorse, Alaska.
"We are pleased to be investing in a project that utilizes North Slope gas to bring reliable energy to the interior" Harvest CEO Jason C. Rebrook said, "There is still a lot of work to be done to bring this project to completion, but we are excited about the partnership with IGU that will give Alaskans greater long-term energy security."
Pending regulatory approvals, construction of the facility is expected to begin in the summer of 2023 and operations starting in late 2024. The facility will be capable of producing 150,000 gallons of Liquified Natural Gas (LNG) per day with an ability to expand.
"We look forward to continuing our work with IGU," said Andrew Limmer, Vice President of Harvest Alaska. "By finding an innovative way to use a small portion of natural gas already being produced at Prudhoe Bay, we will be able to deliver a reliable source of energy to IGU customers nearly 500 miles away in Fairbanks."
The amount of feed gas for the facility will be approximately 15 million cubic feet per day and will be supplied from existing production at Prudhoe Bay. After processing at the facility, the LNG will be transported by truck to Fairbanks and distributed through IGU's existing infrastructure.