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Senator McGuire Pleased about ConocoPhillips’ Announcement to Pursue LNG Export Licenses


Thursday, April 8, 2010, Juneau, Alaska - Senator Lesil McGuire, R-Anchorage, commends the announcement made by representatives from ConocoPhillips today about their efforts to pursue export licenses for Liquefied Natural Gas during the hearing held by the Senate Resources Committee, which she co-chairs.

"Today's announcement is significant because the ability to export gas from Cook Inlet will be critical in ensuring deliverability of natural gas to Alaskans," said Senator McGuire. 

With talks of an in-state gas pipeline, U.S. Representative Don Young sent a letter to the Secretary of Department of Energy, Steven Chu, stating the importance of a LNG export license for the Kenai terminal. Alaska is the only state in the North American region with an LNG export plant and application for LNG export licenses must be made every two years. 

"The Senate Resources Committee has been hearing from a variety of sources that demand for natural gas will soon outgrow supply and therefore the continuation of the facility in the Kenai is imperative," explained Senator McGuire. "Although it seems counterintuitive that export licenses will help secure domestic gas supply, ConocoPhillips explained that the primary reason for exporting is to keep production at a high level during the drop-off in summer demand."

Prior to this announcement, state and local officials were concerned that if ConocoPhillips and Marathon did not apply for export licenses, it would lead to the LNG plant's closure. In early March, the Senate Resources Committee heard proposals by a consortium of three electric companies interested in the LNG facility in order to ensure continued production in existing gas fields.

Senator Lesil McGuire is also chair of Senate Energy Committee and co-chair of the Joint In-State Gas Caucus.

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