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ConocoPhillips resumes exports from Kenai LNG

Oilfield Technology,

ConocoPhillips has resumed exports from its ageing Kenai LNG plant in Alaska. The plant was originally slated for closure in 2011. The company has already sent one cargo of LNG to Kansai Electric Co. in Western Japan on May 25. A company spokesman has stated that another four to five shipments are expected to be sent this year, all of them to Japan.

The plant has been in continuous operation since 1969 and is currently the only functioning LNG export terminal in the USA. It was targeted for closure in early 2011 because the company failed to agree a long term supply deal with Tokyo utilities; there was also difficulty in obtaining feed gas from the mature Cook Inlet basin.

Since the earthquake and tsunami that struck Japan in 2011, demand for LNG there has soared to new heights. The newly enlarged demand for means that the company now has a ready marketplace for Alaskan LNG though.

Written by Peter Farrell.

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