Acting Commissioner of the Department of Natural Resources Joe Balash sent a letter to ConocoPhillips Alaska urging them to look at reopening the liquified natural gas (LNG) facility in Kenai, indicating that “local utility demands will be supported by contracts that cover the next five years, or until 2018″.
ConocoPhillips Spokeswoman Amy Burnett explains how this came about.
Burnett: “Current exports, the export license for the LNG plant actually expired in March of this year, March 31st of this year, and just recently the state sent us a letter requesting that we consider re-applying for that export license, just for background”.
Burnett went on to say they will be looking into this interest, and why.
Burnett: “We appreciate the state’s input and we share their interest in promoting local energy security while supporting the local economy and ConocoPhillips has said previously that we would consider pursuing a new export authorization if local gas needs are met and there is sufficient gas available for exports. So we take the state’s request that we apply for a new export license very seriously and we will be working with local stake holders to further evaluate the feasibility of resuming LNG exports from this facility”.
In the letter from Commissioner Joe Balash he stated, “While it appears that Agrium is interested in re-starting their facility, which would support a long-term demand for Cook Inlet supplies, their project start-up date could leave a gap in the near-term. It appears that the only near-term market opportunity for significant additional demand lies with the re-opening of the Kenai LNG facility”.