ConocoPhillips to Resume Alaska LNG Exports

on April 25, 2014 at 2:00 PM

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ConocoPhillips has obtained DOE authorization to export LNG to non-FTA countries from its Kenai Facility in Alaska.

On April 14, 2014, the Department of Energy (DOE) issued authorization for ConocoPhillips Alaska Natural Gas Corporation (CPANGC) to export liquefied natural gas (LNG) from its Kenai LNG facility in Alaska to non-Free Trade Agreement (FTA) countries.  CPANGC received DOE authorization for LNG export to FTA countries on February 19.  DOE issued the authorizations in response to CPANGC’s December 2013 LNG export permit applications.  The authorization allows CPANGC to export 40 Bcf of natural gas over a two-year period, equivalent to approximately 0.055 Bcf per day of natural gas.  Natural gas supplies from Alaska’s Cook Inlet region will be transported to the Kenai Facility for liquefaction.

DOE’s most recent order authorizing CPANGC’s LNG exports to Japan and certain non-FTA countries expired on March 31, 2013.  According to CPANGC, it did not seek an extension of that order due to uncertainties related to near-term adequacy of Cook Inlet supplies for regional requirements, and applied for a new two-year authorization in December 2013 as circumstances changed to remove those uncertainties.  In September 2013, the State of Alaska requested CPANGC to apply for an LNG export authorization to expand market opportunity for Cook Inlet production, citing positive developments among south-central utilities.  CPANGC noted that positive forecasts for Cook Inlet gas supply led local utilities to execute gas supply agreements in 2013 to secure supply through at least Q1 2018.

CPANGC affirmed its commitment to divert gas from the Kenai facility during peak demand times to meet supply obligations to local utilities.  It expects the Kenai Facility to support local winter deliverability by balancing demand during warmer months and avoiding negative impact to wells and resource recovery during the authorized export period.

April 15, 2014 via Energy Solutions Forum.

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