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ConocoPhillips Selling LNG Plant in Kenai, AK

ConocoPhillips has put a "for sale" sign on its liquefied natural gas (LNG) export terminal in Kenai, AK. For 47 years, the plant was the only LNG export facility in North America; it is one of the longest-operating LNG plants in the world.

The company's last export authorization for the terminal was received in February, and it runs through February 2018, a spokesperson said.

"The Kenai LNG Plant has played a key role in our company's history as well as the history of the Kenai Peninsula," ConocoPhillips said in a statement.

"Our efforts to market the plant are consistent with our company's efforts to regularly review our assets to ensure we are optimizing our portfolio. Our current focus is on our North Slope operations. We believe the plant is a strategic asset that offers good opportunities for the right buyer."

In 2015 the plant operated for six months, liquefying 20 Bcf of gas and delivering six cargos. Due to market conditions, ConocoPhillips did not conduct an export program in 2016. The Kenai plant remains operational and ready to resume exports.

Meanwhile, the Alaska Gasline Development Corp. is working on a natural gas pipeline and LNG liquefaction/export solution to commercialize the state's North Slope natural gas. The state agency is taking over the project after the pullout of the state's major producers -- including ConocoPhillips -- in light of low global prices for LNG.

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