ConocoPhillips on Wednesday filed for a permit to resume exports of liquefied natural gas from their Kenai facility in the Nikiski industrial area.
In an internal email, ConocoPhillips Vice President of Commercial Assets Bij Agarwal announced the company sought a two-year export permit from the U.S. Department of Energy.
ConocoPhillips Alaska spokesperson Natalie Lowman today said the permit was sought with support from local stakeholders and the Alaska Department of Natural Resources, who recently sent a letter requesting that the company restart exports as a way to simulate natural gas production in the Cook Inlet gas fields and continued exploration for more gas.
According to Agarwal, the industrial gas market offered by exports will help keep natural gas fields producing and provide a potential economic basis for exploration and the development of new supplies.
“Resuming exports is good for the natural gas market,” Lowman said. “If you don’t have a place to sell your gas why would you go look for more?"
Lowman said that ConocoPhillips will continue to put local gas supply contracts and utilities first in priority above exports. The company has contracts throughout South Central Alaska running through 2018, she said.
Reach Greg Skinner at peninsulaclarion.com