Marathon, ConocoPhillips Apply for Kenai LNG Extension

Marathon Oil Corporation and ConocoPhillips on Friday announced the companies have jointly filed for a 2-year extension of the Kenai Liquefied Natural Gas (LNG) facility's export license with the US Department of Energy. The current license ends March 31, 2009, and this application would extend the export license thru March 31, 2011.

The Kenai LNG facility, located in Nikiski, Alaska, is the only LNG export plant in North America. The facility initiated operations in 1969 and today employs 58 people; the plant also supports another 128 jobs in the Kenai community. In addition, the operations of the plant contribute approximately $50 million in royalties and taxes to the state and local economies.

"The Kenai LNG operation has played a vital role in the economy of Southcentral Alaska for 38 years," said John Barnes, manager of Marathon's Alaska Production Operations. "This operation is not only a key element of our Alaskan operations, it is a strategically important asset for the region and the state, and its continued operation provides options and flexibility in meeting the future energy needs of the region."

"This extension will mean continued investments in the development of Cook Inlet gas resources and will maintain high paying jobs in the community," said Darren Jones, ConocoPhillips vice president of Alaska Commercial Assets. "ConocoPhillips believes that Cook Inlet has sufficient gas resources to maintain a strong industrial base on the Kenai Peninsula and this extension will provide an incentive for further gas development."

In addition to the direct and indirect employment and other economic benefits to the community, there are hundreds of exploration, production and oil field service jobs in the Cook Inlet fields that provide gas to the facility.

The plant, operated by ConocoPhillips, is owned by ConocoPhillips (70 percent) and Marathon Oil Corporation (30 percent). Additional information on the Kenai LNG operation and the license extension application is available online at


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