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DOE OKs Renewed Non-FTA Exports From Alaska LNG Terminal

The U.S. Department of Energy (DOE) has granted ConocoPhillips Alaska Natural Gas Corp. (CPANGC) authorization to export liquefied natural gas (LNG) from its facility on the Kenai Peninsula to non-free trade agreement (FTA) countries.

Natural gas for export is to come from Alaska's Cook Inlet. The export authorization is for a period of two years and a cumulative export volume of about 40 Bcf. CPANGC recently received a similar authorization to export to FTA countries (see Daily GPI, March 3).

CPANGC and its predecessors have been permitted to export LNG from Alaska for 47 years. However, the company let its most recent authorization lapse as there were uncertainties over the availability of gas in the Cook Inlet. In its latest authorization, DOE said it found that would-be export gas was not needed to meet area demand in the Cook Inlet region.

In its application, CPANGC cited a letter from Alaska's Department of Natural Resources (DNR) in which DNR argued that exports of liquefied Cook Inlet gas provided a necessary stimulus for further development of the Cook Inlet (see Daily GPI, Sept. 18, 2013).

"I'm glad ConocoPhillips will be able to add to Alaska's 40-year history of supplying natural gas to Japan," said U.S. Sen. Lisa Murkowski (R-AK), the ranking Republican on the Senate Energy and Natural Resources Committee and a proponent of LNG exports from the Lower 48 states as well. "Today's announcement by DOE also highlights the growth that's occurring in Cook Inlet, where there is now ample gas supply to both meet local needs and help out our friends overseas."

The previous authorization for the terminal to export to Japan and certain non-FTA countries expired on March 31, 2013.

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