Friday, January 4, 2008
LNG; ConocoPhilips, Marathon make deal with Alaska to ensure adequate supplies
4 January 2008
Greenwire
Energy companies ConocoPhilips and Marathon Oil Corp. reached an agreement with Alaska to develop additional natural gas reserves in Cook Inlet, Gov. Sarah Palin (R) said yesterday.
The agreement ensures that there will be adequate supplies of natural gas for years to come. Under it, the state is supporting a two-year extension of the federal export license for the liquid natural gas plant Nikiski, the only LNG export plant in North America, which converts about 150 to 200 million cubic feet of natural gas into LNG per day, all of which is sold to Japan.
The deal also allows third parties to use the plant to process their natural gas, and the two companies have agreed to sell valuable seismic and well data to other companies looking to develop Cook Inlet's large natural gas reserve.
"It assures the gas will be available to consumers when they need it," said Steven B. Hinchman, Marathon's senior vice president for worldwide production.
The Energy Department still must approve the export license, which would be effective through March 2011. The current export license expires in 2009 (Mary Pemberton, Anchorage Daily News, Jan. 3). -- SG
