US: ConocoPhillips and Marathon to close Kenai LNG plant after 41 years

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ConocoPhillips said Thursday that it is planning to shut down the Kenai liquefied-natural-gas (LNG) export plant in Alaska due to deteriorating market conditions.

‘The Kenai LNG Plant has played an important role in our company’s history for more than 40 years. But with current market conditions and the changes in natural gas supply, continued operation as an export facility is not economically viable at this time,’ said John Roper, a ConocoPhillips spokesman.

Marathon Oil is the co-owner of the plant, which for more than four decades has shipped LNG to Japan. The plant will no longer export gas starting this spring as the two companies were unable to renew their supply contracts with Tokyo Gas and Tokyo Electric (Tepco).

ConocoPhillips said it was considering importing liquefied natural gas to Alaska in the future.

Kenai LNG

The Kenai LNG Plant began operating in 1969, after the nearby North Cook Inlet gas field, which is operated from the Tyonek platform, was discovered in 1962. It remains the only LNG export plant of domestic production in North America. All LNG produced at the plant is sold via contracts with two Japanese utilities. The Kenai LNG plant also plays a key role in serving the natural gas needs of Southcentral Alaska by providing critical additional deliverability to the local market during peak demand and emergency situations.

Source: energy-pedia

Posted on February 11, 2011, in Alaska, Japan, LNG, United States and tagged , , , , , , , , . Bookmark the permalink. Comments Off on US: ConocoPhillips and Marathon to close Kenai LNG plant after 41 years.

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