Natalie Lowman, spokeswoman for ConocoPhillips Alaska, explains:
“There is a lot of LNG in the market right now, and prices have fallen in the last six months to the extent that the business case for us didn’t really support continuing operation of the plant.”
Conoco and Marathon will run the plant as normal through March, when their present contracts with customers are due to expire.
“At that point, we’ll start to mothball the facility and put it into preserve mode in case there’s any other options that we could use the plant for in the future.”
The Kenai closure will not affect ConocoPhillips’ other natural gas operations at Cook Inlet. The company has two gas fields nearby at North Cook Inlet and Beluga River.