Feb, 2011

ConocoPhillips announced yesterday that the company will cease LNG exports from the Kenai LNG Plant, and will begin mothballing the facility for any potential future use. Despite the plant receiving an additional export license that authorizes exports through March 2013, due to current market conditions ConocoPhillips has been unable to negotiate the commercial arrangements that would be necessary to allow for continued operation of the plant as an LNG export facility past April/May of this year.

ConocoPhillips is committed to honoring its current gas supply contracts with local utilities. Additionally, we will be working with the utilities and other potential stakeholders to evaluate opportunities to continue to supply additional natural gas to local markets and manage seasonal gas demands.

The Kenai LNG Plant has played a key role in our company’s history as well as that of the Kenai Peninsula. We’re proud of that history, and we are appreciative of the state’s and the Peninsula community’s roles in the plant’s success through the years.

The plant has been operating for 40 years. It is owned, directly or indirectly, 70 percent by Alaska Natural Gas Company (ConocoPhillips) and 30 percent by Marathon Oil Company.‚Äč