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ConocoPhillips, Marathon apply for 2-year extension for Kenai LNG exports
The current license expires March 31, 2009. This application would extend the export license through March 31, 2011.
The Kenai LNG facility, located in Nikiski, is the only LNG export
plant in North America. The facility initiated operations in 1969 and
today employs 58 people. The plant also supports another 128 jobs in
the Kenai community. The operations of the plant contribute
approximately $50 million in royalties and taxes to the state and local
economies.
"This extension will mean continued investments in the development of
Cook Inlet gas resources and will maintain high-paying jobs in the
community," said Darren Jones, ConocoPhillips vice president of Alaska
Commercial Assets, in a written release. "ConocoPhillips believes that
Cook Inlet has sufficient gas resources to maintain a strong industrial
base on the Kenai Peninsula and this extension will provide an
incentive for further gas development."
"The Kenai LNG operation has played a vital role in the economy of
Southcentral Alaska for 38 years," said John Barnes, manager of
Marathon’s Alaska Production Operations, in a press release. "This
operation is not only a key element of our Alaskan operations, it is a
strategically important asset for the region and the state, and its
continued operation provides options and flexibility in meeting the
future energy needs of the region."
In addition to the direct and indirect employment, and other economic
benefits to the community, there are hundreds of exploration,
production and oil field service jobs in the Cook Inlet fields that
provide gas to the facility.
ConocoPhillips operates and has 70 percent ownership of the facility. Marathon owns the remaining 30 percent.
