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Kenai LNG facility to resume exports

LNG Industry,

ConocoPhillips Alaska Natural Gas Corporation has received authorisation from the US Department of Energy (DOE) to export LNG over a two-year period to FTA (Free Trade Agreement) and non-FTA countries. The company will resume exports from its Kenai LNG facility this spring.

LNG market opportunity

In September 2013, the state of Alaska requested that ConocoPhillips apply for an LNG export authorisation to provide an additional market opportunity for Cook Inlet natural gas production. The reason for this request was the Southcentral utilities have their natural gas needs under contract.

ConocoPhillips had previously said that it would consider pursuing a new export authorisation if local Cook Inlet area gas needs were met and there was sufficient gas available for export. Last year, local utilities executed gas supply agreements securing their supply through to at least Q1 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.

Authorisation granted

In December 2013, ConocoPhillips submitted applications to the DOE to resume exports of LNG from the Kenai Facility for two years. The authorisation to export LNG to FTA countries was issued on 19 February 2014, and the non-FTA authorisation was issued on 14 April 2014. Collectively, these authorisations allow export of the equivalent of 40 billion ft3 of LNG over a two-year period.

ConocoPhillips appreciates the support for resuming LNG exports from many local stakeholders, and looks forward to continuing to contribute to the local economy.

Adapted from press release by Katie Woodward

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