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Conoco teams with BP on Alaskan pipeline plan
01 June 2008
ConocoPhillips and BP have joined forces with an ambitious plan for a natural gas pipeline from Alaska to
markets in Canada and the rest of the US. The US giant, the country’s third biggest oil company, has submitted a plan to the Alaska state government to complete the project at an estimated cost of up to $42bn. The companies will form a new firm based in Anchorage to develop the project.
Project Denali will transport natural gas from Alaska’s North Slope to southern markets along the Alaska Highway to the Alberta Hub. Exxon Mobil was also invited to participate in the partnership. Exxon, BP and ConocoPhillips are the three largest leaseholders of oil and gas in the North Slope.
The Denali project will consist of a large-diameter pipeline carrying about 4 billion cubic feet of gas per day and will be in operation by 2018-19.
Work begins this summer and by 2010, the companies plan to spend about $600 million on engineering, field work and an open season, before pursuing regulatory approvals to build a pipeline, from the Federal Energy Regulatory Commission in the US and National Energy Board in Canada. The companies are said not to be seeking state subsidies.
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