ConocoPhillips Announces Resumption of Exports from the Kenai LNG Facility
ConocoPhillips Alaska Natural Gas Corporation (ConocoPhillips) has received authorization from the United States Department of Energy (DOE) to export liquefied natural gas over a two-year period to Free Trade Agreement (FTA) countries and non-FTA countries, and plans to resume exports of LNG this spring. ConocoPhillips appreciates the support for resuming LNG exports from many local stakeholders, and looks forward to continuing to contribute to the local economy.
In September, 2013, the State of Alaska requested that ConocoPhillips apply for an LNG export authorizations to provide an additional market opportunity for Cook Inlet natural gas production, citing the fact that Southcentral utilities have their natural gas needs under contract.
ConocoPhillips had previously said that it would consider pursuing a new export authorization if local Cook Inlet area gas needs were met and there was sufficient gas available for export. During 2013, local utilities executed gas supply agreements securing their supply through at least the first quarter of 2018. The Cook Inlet area gas supply forecast has increased, which is a positive development for local utilities. LNG exports will provide a market opportunity for Cook Inlet gas production in excess of local market demand.
In December, 2013, ConocoPhillips submitted applications to the DOE to resume exports of LNG from the Kenai Facility for two years. The authorization to export LNG to FTA countries was issued on February 19, 2014, and the non-FTA authorization was issued today. Collectively, these authorizations allow export of the equivalent of 40 BCF of LNG over a two-year period.
ConocoPhillips is committed to meeting its local gas supply contracts and to diverting gas from the LNG facility to address local energy supply issues if needed.
Source: ConocoPhillips Alaska, Inc.
Posted: April 14, 2014