ConocoPhillips and Marathon Oil contracted with Bechtel to construct the first natural gas liquefaction plant based on a new and innovative liquefaction process, the ConocoPhillips Optimized Cascade process. The result was the Kenai, Alaska LNG facility, which began operation in 1969.
ConocoPhillips’ initial intent was to use the technology exclusively on its own equity projects. However, in the mid-1990s, Atlantic LNG sought to build a low-cost, yet reliable, single train LNG facility. After completing a competitively bid front-end engineering design (FEED), with ConocoPhillips’ support, Bechtel won the engineering, procurement and construction (EPC) contract, resulting in the first externally licensed application of the Optimized Cascade process and the next opportunity for ConocoPhillips and Bechtel to work together in the field of natural gas liquefaction.
As a result of this achievement, ConocoPhillips and Bechtel formed a Global LNG Collaboration (the “Collaboration”) in 1998 to capitalize on ConocoPhillips’ LNG technology and operations expertise and Bechtel’s world-class design and project execution know-how of LNG facilities. Since then, the Collaboration has become a leading player in the LNG industry with a reputation for building efficient LNG plants on schedule and at a competitive cost.