ConocoPhillips and Marathon Oil Corp. announced Jan. 19 that they have jointly filed for a two-year extension of the Kenai Liquefied Natural Gas (LNG) facility's export license with the U.S. Department of Energy.
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. “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. “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.
Sen. Ted Stevens, R-Alaska, has introduced the Gasoline Consumer Anti-price Gouging Protection Act, which would make it unlawful to raise the price of gasoline to an unconscionable level during times of crisis.
Alaska currently has consumer protection and antitrust statutes in place to ensure Alaskans do not fall victim to price gouging practices. Senate Bill 94 would add an additional layer of consumer protection for Alaskans by allowing the federal government to prosecute interstate perpetrators of price gouging, Stevens said Jan. 12.
“Gas prices can rise sharply immediately following a supply interruption like that which occurred in the Gulf of Mexico after Hurricane Katrina,” Stevens said in a written statement. “The victims of these events should not also become the victims of price gouging.”
Twenty-eight states have enacted price-gouging laws crafted to meet their unique local circumstances. Stevens said his bill would supplement existing state laws by creating strict federal price gouging language enforced by the Federal Trade Commission and the Department of Justice. This language would close an existing regulatory gap by combating regional and multi-state price gouging violations with substantial civil and criminal penalties.
The Gasoline Consumer Anti-price-gouging Protection Act would permit civil penalties of up to $500,000 for independent small businesses and up to $5 million for other suppliers. Criminal penalties of up to two years imprisonment would be authorized for persons who violate this law.
The measure also provides gasoline suppliers with the flexibility to adjust prices as necessary during a crisis to maintain the free flow of commerce while still protecting consumers from unjustified price hikes.
