Not enough excess natural gas is available in Alaska’s Cook Inlet to support liquefied natural gas (LNG) exports to continue from the Kenai LNG Plant on the Kenai Peninsula, according to operator ConocoPhillips. The producer said it would allow the plant’s export license to expire on March 31. “For the future, ConocoPhillips will consider pursuing a new export authorization only if local gas needs are met, and there is sufficient gas for export,” the company stated. “ConocoPhillips still has the flexibility to resume operations and apply for a new export authorization if sufficient gas becomes available.” The plant was to be mothballed after selling LNG to Japan for more than 40 years, but operations were extended to meet the country’s increased demand for gas following the meltdown of the Fukushima Daiichi nuclear plant (see Daily GPI, Aug. 21, 2012). Separately, developing a large-scale LNG export facility is now a key component of Alaska’s plans to commercialize North Slope gas reserves (see Daily GPI, Dec. 12, 2012).

The Idaho Public Utilities Commission (PUC) is taking public comment through March 18 on an Intermountain Gas Co. proposal to sell surplus liquefied natural gas (LNG) from its Nampa LNG facility to nonutility customers. Excess LNG sales are not expected to increase customer rates and have the potential to decrease rates, according to Intermountain. The company proposes to share 50% of sales revenue with customers until system growth requires it to use all of its LNG to meet peak-day needs. Intermountain would use all stored LNG to first satisfy utility customer demand, even if some of the stored LNG was initially designated for nonutility sales. The company would provide a 2.5-cent credit for each gallon sold to meet any operations and maintenance costs resulting from nonutility sales and another 2.5 cents/gallon to meet any capital expenditures or increased maintenance costs to the Nampa facility. In January the PUC gave Intermountain emergency authority to sell up to 100,000 gallons of LNG from its Nampa facility to aid residents at nearby West Yellowstone, MT, where LNG shortages were anticipated due to a power outage (see Daily GPI, Jan. 8).

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