Senator Giessel Welcomes News of ConocoPhillips’s Export License Application
Reopening plant will provide market opportunities which increase Alaska’s investment potential
ANCHORAGE-Today, ConocoPhillips announced its application to the U.S. Department of Energy to resume exports at the Kenai LNG Plant located in Nikiski, on the Kenai Peninsula. In 2012, surrounding concerns of local market supply, ConocoPhillips ceased its LNG exports. Last March, ConocoPhillips allowed its export license for the Nikiski plant to expire. Senator Cathy Giessel, chair of the Senate Resources Committee, is pleased that ConocoPhillips is preparing to reopen its mothballed LNG facility, providing new market opportunities for continued investment and exploration in the Cook Inlet.
LNG exports provide access to the world gas market, which help maintain production in natural gas fields and leverage investment dollars for additional development and exploration, increasing energy security for Southcentral Alaska. ConocoPhillips estimates export volumes of up to 20 BCF per year, but remains committed to supplying local gas contracts.
“Due to increased investment and exploration in the Cook Inlet, we now have enough natural gas to meet local utility demands through 2017. Providing energy for Alaskans is the first goal, but this requires continued investment and exploration,” Senator Giessel (R-Anchorage Hillside/Turnagain Arm/North Kenai) said. “This announcement isn’t just big for the Kenai Peninsula, it’s big for the entire state. While this facility will provide high wage jobs and stimulate the local economy in Nikiski, a licensed LNG export terminal will open the market for potential investors and provide incentives for increased production and exploration. If there is a market to absorb production, companies will make the additional investment to find and produce the gas, production tracks demand.”
Senator Giessel held a series of Senate Resources Committee meetings during the last legislative session focused on Cook Inlet gas supply and demand. One of the greatest challenges to attracting new investment in the Cook Inlet is Alaska’s constrained market. By maintaining an attractive investment environment and by opening up market opportunities, Senator Giessel is confident that increased investment will continue to flow into the Cook Inlet.
For more information, please contact Lindsay Williams in Senator Giessel’s office at 907-269-0181.