DOE grants latest approval for Kenai LNG exports out of Alaska

The U.S. Department of Energy on Feb. 8 granted a September 2015 application from ConocoPhillips Alaska Natural Gas Corp. (CPANGC) for blanket authorization to export liquefied natural gas (LNG) in a volume equivalent to approximately 40 billion cubic feet (Bcf) of natural gas on a cumulative basis over a two-year period commencing on Feb. 19, 2016.

CPANGC sought authorization to export the LNG by vessel from an existing natural gas liquefaction and marine terminal facility located near Kenai, Alaska (Kenai LNG Facility). CPANGC wants to export this volume of LNG on an aggregate basis to: (i) any country with which the United States currently has, or in the future will have, a free trade agreement (FTA) requiring national treatment for trade in natural gas, (FTA countries); and (ii) any other country with which trade is not prohibited by U.S. law or policy and with which trade is not prohibited by U.S. law or policy (non-FTA countries).

CPANGC requested authorization to export this LNG on its own behalf or as agent for other entities who hold title to the LNG at the time of export. This Feb. 8 authorization is the latest in a series of export authorizations issued to CPANGC and its predecessors over nearly 50 years permitting the export of LNG from the State of Alaska.

“Based on a review of the record in this proceeding, DOE/FE finds that the exports proposed in the Application are not inconsistent with the public interest,” said the department. “In particular, we find that the proposed exports of natural gas are not needed to meet regional demand in the Cook Inlet, Alaska area during the two-year period of this authorization. For these and other reasons discussed below, we grant CPANGC’s Application. This authorization permits the requested LNG exports by vessel on a short-term or spot market basis from the Kenai LNG Terminal to any country with which trade is not prohibited by U.S. law or policy, subject to the terms and conditions set forth below.”

CPANGC is a wholly-owned subsidiary of ConocoPhillips Co., a publicly-traded corporation. CPANGC is authorized to do business in the State of Alaska, among other states. CPANGC is the owner and operator of the Kenai LNG Facility. CPANGC states that it has the ability to manufacture LNG from natural gas produced from fields in the Cook Inlet region of Alaska and transported by pipeline to the Kenai LNG Facility.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.