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ConocoPhillips to sell LNG shipped from Alaska in November

Steel News - Published on Thu, 10 Nov 2011

TEX reported that the US ConocoPhillips will sell a LNG cargo for November 2011 shipment from Alaska on spot basis. The company decided to halt Kenai LNG Plant in the first half of November and is continuing discussion with Tokyo Electric Power Company in order to sell a final cargo from the plant which is scheduled to be shut.

ConocoPhillips had planned to suspend LNG production in accordance with the termination of LNG sale and purchase contract with TEPCO and Tokyo Gas Co Limited in March 2011. However, amid demand for LNG surging mainly in Japan, it pulled back its plan to stop production and sold total four cargoes on spot basis, that were redundantly produced at Kenai LNG Plant, to Japan and China during the period from April through August 2011.

As for Kenai Plant where the final cargo is expected to be shipped in November, it is anticipated that the plant will be temporarily halted instead of being dismantled. ConocoPhillips has obtained LNG export license from the US Department of Energy for two years from April 2011.

Accordingly, the company can produce and export LNG if it has spare feedstock gas. It seems that the company is planning to resume LNG production if the situation allows.

Meanwhile, ConocoPhillips must perform its obligation to supply gas to the local areas. Therefore, it is estimated that LNG production will be resumed in spring 2012 or later when it will have allowance to supply feedstock gas after winter demand season ends.

(Sourced from TEX Report Limited)

Posted By : admin on Thu, 10 Nov 2011
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