Monday, March 4, 2013

Liquid Natural Gas Export License Announcement

Senator Cathy Giessel's March 4, 2013 Newsletter

Today, ConocoPhillips announced that they would not be applying for an extension of the Liquid Natural Gas (LNG) export license for the Nikiski LNG plant. The current export license expires on March 31. In the future, ConocoPhillips will consider reactivating the export license but only if local gas needs are met, leaving sufficient gas for export. Right now, that sufficient gas for export is not available. The LNG export plant is currently operational and will be held in “cold mode” which will allow a faster return to service should the availability of sufficient volumes of gas make that option viable.

The export license for the Nikiski LNG plant has been active for 42 years. It was the first, and only, LNG export plant operating in the U.S. Alaska’s export of natural gas was under contract with Japan, and the contract was faithfully met, without fail, for those 42 years. It is a sad day to see the Nikiski plant cease exporting. It is imperative that Alaska be not only competitive in the oil and gas development world but attractive as well. I am thankful for Hilcorp, Apache, Cook Inlet Energy and others who are working hard in Cook Inlet to develop our resources…for our citizens, businesses and the world.