Local Supply at Issue in LNG Export License Extension
Posted on Jun 11, 2007 in Liquefaction, Markets and Competition, State and Local Issues | Comments Off on Local Supply at Issue in LNG Export License Extension
ConocoPhillips and Marathon have applied to the U.S. Department of Energy to extend their LNG export license for their Kenai LNG facility located in Alaska. The state government has conditioned its support for extension of the license on ConocoPhillips and Marathon agreeing to supply local utilities and end users during the peak season before allowing gas to be exported overseas. ConocoPhillips and Marathon respond that the government is attempting “to use the Natural Gas Act section 3 public interest standard to create a right of eminent domain to take natural gas from applicants’ export operations for the private use of [local utilities and end users].” Petroleum News provides further coverage. [Subscription required]