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Nikiski Export Renewal Would Be for Already Approved Volumes In their application for an extension of the Nikiski LNG plant’s export license, ConocoPhillips and Marathon have said that they are specifically seeking additional time to complete the shipment of volumes approved for export in 2008.
The companies estimate that by the time their current license expires in March of 2011 they will only have shipped 55 trillion Btu of a 99 trillion Btu allotment.
The slow pace resulted from a decision to use a single tanker for export rather than two, due to economic considerations.
In the case that the license is extended, export would only take place after local gas contracts were honored, say the companies. If the license is not extended, those same local contracts include provisions allowing the companies to curtail planned local deliveries. Production declines have resulted in some controversy over the export of LNG from the Nikiski plant, but producers have maintained that well productivity will be harmed without the ability to keep gas flowing to the export facility in times when regional demand is low. The current license extension request has the support of Alaska’s Department of Natural Resources and the state legislature. |
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