ConocoPhillips declines to seek LNG export license extension for now

ConocoPhillips will not seek an extension of its export license for the natural gas liquefaction plant in Kenai because of a supply shortage, reports the Alaska Journal of Commerce. But the company plans to keep the plant in standby mode in case supplies improve.

As Cook Inlet gas supplies declined in recent years, exports became problematic. The company had applied for, and received, several extensions of its federal export license over the years, the latest being a two-year extension to 2013.

The U.S. Department of Energy requires that gas supplies be sufficient to meet domestic, in this case regional, energy needs, and because utilities in Southcentral Alaska are now short of gas it is unlikely that DOE would grant the license extension even if it were applied for.

Read more at the Peninsula Clarion.