Companies working with the state of Alaska to develop a major natural gas pipeline estimated Friday that the project would cost $20 billion to $41 billion, depending on the route. The Alaska Pipeline Project seeks to move natural gas from the harsh North Slope to market in Alaska, through Canada and to the Lower 48.
The high end of the estimate is at least a billion more than earlier thought, but project officials believe the pipeline is economically viable and could start carrying gas in about 2020. More details of the plan came in a filing Friday with federal regulators, the first step toward an "open season," when companies behind the project will court gas producers and try to secure commitments for shipping deals.
TransCanada Corp., based in Calgary, Alberta, is working with Irving, Texas based Exxon Mobil Corp. to advance the project. The state of Alaska has promised to reimburse up to $500 million of eligible costs. A rival project by Britain's BP PLC and Houston-based ConocoPhillips is also moving ahead, though its difficult for many, given the economics involved, to see more than one project going forward.
Tony Palmer, TransCanada vice president of Alaska Development, told reporters Friday that he believes the best and most effective way to bring the project forward is to form an alliance between the state, TransCanada and the North Slope's current major players, Exxon Mobil, BP and ConocoPhillips. It's during open season when shippers interested in moving gas to markets in Alaska and outside the state indicate which their preferred route.....Read the entire article.
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