The U.S. Department of Energy has authorized the renewal of licenses for the export of liquefied natural gas from ConocoPhillips’ Kenai Peninsula LNG facility, the company announced today. The agency has issued licenses for exports to both free-trade-agreement and non-free-trade-agreement countries over a two-year period, the company says.
The company says that, with the licenses having now been issued, it plans to resume LNG exports from the Cook Inlet basin in the spring.
“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,” ConocoPhillips said in a press release issued today. “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.”
Sen. Lisa Murkowski expressed her support for the renewal of LNG exports.
“I’m glad ConocoPhillips will be able to add to Alaska’s 40-year history of supplying natural gas to Japan,” Murkowski said. “Today’s announcement by DOE also highlights the growth that’s occurring in Cook Inlet, where there is now ample gas supply to both meet local needs and help out our friends overseas.”
Sen. Mark Begich said that he had urged the Department of Energy to fast-track ConocoPhillips’ application for exports to non-free-trade-agreement countries such as Japan. There is currently a queue of similar applications for planned LNG facilities in the Lower 48.
“This is great news for the cradle of Alaska’s oil and gas industry on the Kenai Peninsula,” Begich said. “With plenty of gas available to meet local needs through at least 2018, we’re seeing the kind of job growth responsible oil and gas development can provide.”
See story in April 20 issue, available online at 11 a.m., Friday, April 18 at www.PetroleumNews.com