Friday, June 15, 2012

ConocoPhillips resurrects shipments of LNG from Alaska to Japan

ConocoPhillips has resumed exports of liquefied natural gas (LNG), helping revitalize a dormant plant in Nikiski, Alaska. The company sent a shipment of LNG to Japan last month, according to company spokeswoman Natalie Lowman.

Reuters reports that Conoco is scheduled to deliver four to five shipments of LNG from Alaska to Japan, but she declined to name the recipient.

In early 2011, the Kenai Peninsula plant in Nikiski was scheduled to close because Conoco was unable to secure a shipping contract with Tokyo. But it appears as if a new interest in Alaska LNG has emerged, prompting Conoco to reopen the plant.

The 2011 earthquake that devastated Japan's nuclear power plants has left the country seeking new energy sources.

Lowman was unclear about the plans for LNG shipments beyond 2012, saying,?"It's too early to speculate. All potential uses for the plant depend on local needs, the volume of Cook Inlet natural gas production, or the availability of a natural gas via a pipeline from the North Slope to Southcentral Alaska."

Last year, ConocoPhillips announced plans to mothball its Nikiski liquefied natural gas plant, laying off about 60 company employees and contract workers.

The plant has been a mainstay of the Kenai Peninsula community for more than 40 years. Lowman said at its peak it shipped 64 billion cubic feet of gas a year to Asian markets, primarily Japan. But in recent years shipments have dwindled as other supplies of LNG have flooded the Pacific Rim.

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