Phillips 66 Natural Gas Co. and Marathon Oil Co. plan to step up shipments of Alaskan liquefied natural gas to Japan.
The two companies signed a letter of intent with Ishikawajima-Harima Heavy Industries Ltd., Tokyo, for construction of two LNG tankers, each with a capacity of 87,500 cu m. One is scheduled for delivery in mid-1993, the other at yearend 1993.
They will replace Phillips-Marathon's Arctic Tokyo and Polar Alaska tankers, each with a capacity of 71,500 cu m, which have been carrying LNG from Kenai, Alas., to Tokyo since 1969. Deliveries go to Tokyo Electric Power Co. Inc. and Tokyo Gas Co. Ltd.
Gas comes from fields in the Upper Cook Inlet.
Phillips, with a 70% interest in the project, operates the combine's liquefaction plant at Kenai. Marathon, which holds the remaining interest, operates the tankers employed in North America's only LNG export operation.
ROYALTY SETTLEMENT
Meantime, Marathon agreed to a settlement of 6 year long legal dispute over royalty payments on gas it produced from leases in the Kenai region.
The agreement among Marathon, the Interior Department's Minerals Management Service, and Cook Inlet Region Inc. (CIRI), an Alaska native corporation, calls for Marathon to pay nearly $19 million to MMS and CIRI to settle the dispute. Marathon will deduct $8.1 million from that sum in credits for past payments and overpayments.
The sum includes $10.22 million in settlement of a civil penalties portion of the dispute.
A portion of the agreed amount will go to CIRI for further sharing with other Alaska native corporations.
Copyright 1990 Oil & Gas Journal. All Rights Reserved.
