Company Seeks Gas Pipeline
Posted on: Saturday, 29 March 2008, 03:00 CDT
ConocoPhillips said Friday that it plans to develop a multibillion-dollar pipeline that would transport natural gas from Alaska to the lower 48 states and Canada.
The oil exploration and production company said it's "prepared to make significant investments, without state matching funds, to advance this project."
ConocoPhillips spokesman Charlie Rowton said the company's best estimate for the entire project, including the pipeline from Alaska's North Slope to Chicago, is between $25 billion and $42 billion.
The pipeline would provide an important avenue for bringing Alaska's massive stores of natural gas to U.S. markets that rely on it for heating homes and other uses. It would move about 4 billion cubic feet of natural gas per day.
The U.S. consumed about 21.7 trillion cubic feet of natural gas in 2006, according to the Energy Department.
In a statement, ConocoPhillips Chairman and Chief Executive Jim Mulva said the company hopes to work directly with the state to advance the project as quickly as possible.
"We also expect to approach other parties to explore ways through which their participation could add value to this effort," Mr. Mulva said.
Specifically, Mr. Rowton said Exxon Mobil Corp. and BP PLC would be logical participants as the project moves forward. Partnering with a pipeline company also is a possibility.
BP spokesman Steve Rinehart in Alaska said he couldn't speculate on whether the company would be interested in partnering with ConocoPhillips. Exxon Mobil said it had no comment.
ConocoPhillips said it is gathering data to support the pipeline permit application.
Alaska has struggled for decades to get a deal either with North Slope producers or independent pipeline companies to build a line that could possibly run from the North Slope through Canada and into the Midwest.
A proposed deal between former Gov. Frank Murkowski and North Slope producers BP, Exxon Mobil and ConocoPhillips fell apart last year.
Originally published by John Porretto Associated Press.
(c) 2007 Augusta Chronicle, The. Provided by ProQuest Information and Learning. All rights Reserved.
Source: Augusta Chronicle, The
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