Flint Hills Completes Phase 2 Engineering for Trucking LNG
Flint Hills Resources Alaska announced today that it is wrapping up phase 2 engineering on the LNG trucking project that was announced in August of 2011. Mike Brose, Vice President for Flint Hills Resources Alaska stated “In the 15 months since the project was announced we have made significant progress. Flint Hills still believes LNG trucking is a valuable project for Fairbanks and interior Alaska. However, there are a number of other entities that have expressed interest in this project, and we think the time is right for a third party to determine if there is sufficient support for the project outside of the industrial demand that Flint Hills has been targeting.”
With the completion of phase 2 engineering, the next step that must be taken is to determine whether there is sufficient interest in LNG, outside of the industrial demand that FHR is targeting, to build a plant. Flint Hills believes that the Alaska Industrial Development and Export Authority (AIDEA) and the Alaska Energy Authority (AEA) are the right entities to explore that question, and has invited those entities to provide the company with a proposal. Mike Brose stated “we don’t think that we would build the plant for our needs and the needs of other industrial users alone, so we will wait for AIDEA or AEA to do further investigation and present a proposal if they think that is appropriate. Flint Hills is willing to provide AIDEA and AEA our completed phase 2 engineering studies if that would be helpful in their analysis.”
With AIDEA and AEA exploring the broader interests of Alaskans in the LNG project outside of industrial demand, Flint Hills has terminated discussions with Golden Valley Electric Association (GVEA). Flint Hills anticipates that GVEA’s needs will be considered in the analysis by AIDEA and AEA.
Flint Hills has been and continues to be opposed to all government mandates and subsidies as they have reviewed the LNG project and never requested State assistance for this project.
Flint Hills Resources, LLC, through its subsidiaries, is a leading refining and chemicals company. It markets products such as gasoline, diesel, jet fuel, ethanol, olefins, polymers and intermediate chemicals as well as base oils and asphalt. The company, based in Wichita, Kan., has expanded its operations through capital projects and acquisitions worth more than $5.3 billion since 2002. With about 3,600 employees, Flint Hills Resources strives to create value for customers and society. www.fhr.com