Frozen Sooner
4/8/2008, 09:21 PM
BP joins Conoco Phillips in gas pipeline plan
By WESLEY LOY
[email protected]
Published: April 8th, 2008 04:56 PM
Last Modified: April 8th, 2008 04:58 PM
JUNEAU - BP announced this morning it will join Conoco Phillips to plan a natural gas pipeline from the North Slope through Canada.
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Conoco in November had announced a plan for a pipeline, but BP and Conoco executives said today in Anchorage that this is a fresh plan.
A third company, Exxon Mobil - the largest Slope gas holder - remains on the sideline and was not part of today's joint announcement from BP and Conoco.
BP's move seems to bolster Conoco's competing alternative to the pipeline proposal from TransCanada Corp., which is bidding for an exclusive state license and a $500 million subsidy under AGIA, the Alaska Gasline Inducement Act.
BP and Conoco said they will spend $600 million to plan for an "open season," a process where companies with gas to ship bid for space in the new pipeline. Then the companies say they will apply for certification from U.S. and Canadian pipeline regulators and "move forward with project construction."
"The Alaska gas pipeline will be a historic project, and we are pleased to be working with Conoco Phillips to move it forward," said BP chief executive Tony Hayward.
BP and Conoco dubbed their project "Denali."
They say they'll establish a new company and a project headquarters in Anchorage to manage Denali.
BP's action is reminiscent of the scenario that played out earlier this decade, when Conoco was followed by BP and then Exxon in a partnership seeking a "stranded gas" contract under the Murkowski administration.
That effort fizzled.
State lawmakers in Juneau have scheduled an 11:30 a.m. news conference to talk about the BP-Conoco announcement.
This is big big news in the oil and gas industry-this pipeline will be an undertaking similar to the oil pipeline from the North Slope to Valdez-and, in fact, contains a plan to ship natural gas directly from the North Slope to Chicago!
Also big news, because as mentioned above there's a competing venture that it looks like BP and Conoco are trying to snuff out. The BP/Conoco venture is to be funded entirely with private money, unlike the competing TransCanada plan, which will involve heavy state investment.
Me likey.
By WESLEY LOY
[email protected]
Published: April 8th, 2008 04:56 PM
Last Modified: April 8th, 2008 04:58 PM
JUNEAU - BP announced this morning it will join Conoco Phillips to plan a natural gas pipeline from the North Slope through Canada.
Story tools
Comments
E-mail a friend
Digg this
Seed Newsvine
Send link via AIM
Add to My Yahoo!
Font size : A | A | A
Conoco in November had announced a plan for a pipeline, but BP and Conoco executives said today in Anchorage that this is a fresh plan.
A third company, Exxon Mobil - the largest Slope gas holder - remains on the sideline and was not part of today's joint announcement from BP and Conoco.
BP's move seems to bolster Conoco's competing alternative to the pipeline proposal from TransCanada Corp., which is bidding for an exclusive state license and a $500 million subsidy under AGIA, the Alaska Gasline Inducement Act.
BP and Conoco said they will spend $600 million to plan for an "open season," a process where companies with gas to ship bid for space in the new pipeline. Then the companies say they will apply for certification from U.S. and Canadian pipeline regulators and "move forward with project construction."
"The Alaska gas pipeline will be a historic project, and we are pleased to be working with Conoco Phillips to move it forward," said BP chief executive Tony Hayward.
BP and Conoco dubbed their project "Denali."
They say they'll establish a new company and a project headquarters in Anchorage to manage Denali.
BP's action is reminiscent of the scenario that played out earlier this decade, when Conoco was followed by BP and then Exxon in a partnership seeking a "stranded gas" contract under the Murkowski administration.
That effort fizzled.
State lawmakers in Juneau have scheduled an 11:30 a.m. news conference to talk about the BP-Conoco announcement.
This is big big news in the oil and gas industry-this pipeline will be an undertaking similar to the oil pipeline from the North Slope to Valdez-and, in fact, contains a plan to ship natural gas directly from the North Slope to Chicago!
Also big news, because as mentioned above there's a competing venture that it looks like BP and Conoco are trying to snuff out. The BP/Conoco venture is to be funded entirely with private money, unlike the competing TransCanada plan, which will involve heavy state investment.
Me likey.