Houston-based energy giant and LNG player ConocoPhillips is reportedly ready to shelve the Kenai LNG export facility on the Kenai Peninsula in Alaska.
The company put the facility up for sale in November as part of the company’s efforts to regularly review its assets to ensure it is optimizing its portfolio last year and was evaluating bids in April this year.
According to the latest reports by the local media, ConocoPhillips has not yet found the right buyer so the facility could be mothballed this fall in order to save expenses. The company’s spokesperson was reported as saying talks are still ongoing with potential buyers.
The export plant last operated for six months during 2015, liquefying 20 Bcf of natural gas and delivering six LNG cargoes, while, due to the market conditions, ConocoPhillips did not conduct an export program in 2016.
Since the last export, the facility has been in a cold shutdown mode, however, ConocoPhillips has been buying natural gas to keep the storage tanks cold to enable a faster restart of the facility. However, the company has decided to cut the supply and allow the tanks to warm up to cut on expenses, but it means the time and price to get the facility back online in the future would go up.
The Kenai LNG plant complex, that is operational and ready to resume exports, includes docking and loading facilities to transport LNG, and has shipped over 1,300 cargoes primarily to Japan.
LNG World News Staff
Source: LNG World News
