Conoco Says Alaska Gas Supply Not Enough for Exports
From Bloomberg
By Jacob Adelman & Chou Hui Hong
ConocoPhillips (COP) may cease shipments of liquefied natural gas from the U.S.’s only export terminal in Alaska because of insufficient local supply.
The company, whose export license expires March 31, will apply for a renewal only if there is enough gas at its Kenai plant in south-central Alaska after meeting local demand, Amy Burnett, a company spokeswoman, said in an e-mail. The terminal is the only U.S. plant in operation that’s authorized to sell domestically produced fuel to countries with which the nation has no free trade agreement.
“Right now, ConocoPhillips is unaware of sufficient gas supply to support exports,” Burnett said. “ConocoPhillips has the flexibility to resume operations and apply for a new export authorization if sufficient gas becomes available.”
ConocoPhillips shipped four spot LNG cargoes from Alaska to Japan in 2012, according to data from the U.S. Department of Energy. The Asian country purchased 271,364 metric tons of gas from the U.S. last year, according to finance ministry records.
