KENAI, Alaska (AP) – A subsidiary of Hilcorp Alaska is seeking to begin dismantling an oil terminal on the Cook Inlet next year after oil is expected to start flowing through a reconfigured pipeline system in September.

The Peninsula Clarion reports the Cook Inlet Pipeline Company filed for permission earlier this this month with the Regulatory Commission of Alaska to begin shutting down the Drift River Oil Terminal in early 2019.

Hilcorp is expecting to complete the $73 million project later this year to reconfigure an existing underwater pipeline between Beluga and Ninilchik to carry oil instead of natural gas.

Oil is currently transported across the inlet to the terminal by tanker.

Hilcorp is also planning to disconnect the Christy Lee Loading Platform, which is currently connected to a large crude oil tank farm.

Information from: (Kenai, Alaska) Peninsula Clarion,

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