KENAI -- Conoco Phillips and Marathon Oil Corp. have agreed to extend operations at their Kenai liquefied natural gas plant until August to fulfill short-term contracts to Asia.
The companies said Wednesday that this doesn't affect their plans to mothball the plant. Rather, Conoco Phillips' Natalie Lowman said this was a case of the plant having the gas and the short-term market needing it.
She called it a good business decision but said it doesn't change the long-term concerns with a now-limited Cook Inlet gas supply.
The plant plans to ship four additional cargos, three to Japan and one to China.
Gov. Sean Parnell called this good news for the plant's workers, local community and Alaska's economy. The companies cited market changes when they announced plans to mothball the facility as early as April.