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Companies say Alaska gas pipeline could cost $41B

Companies say Alaska gas pipeline could cost $41B

The company holding an exclusive license with the state of Alaska to develop a major natural gas pipeline estimates the project will 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.
More details of the plan came in a filing Friday with federal regulators that's the first step toward an "open season," when the 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 the cost.
A rival project by Britain's BP PLC and Houston-based ConocoPhillips is also moving ahead.
It's during open season when shippers interested in moving gas to markets in Alaska, and outside it, will indicate which route they'd prefer.
One pipeline option, estimated to cost $32 billion to $41 billion, would run from the North Slope to Alberta, Canada, where the project says gas could then be moved on existing systems to North American markets. The other, estimated to cost $20 billion to $26 billion, would run 900 fewer miles (1,440 fewer kilometers), from the North Slope to Valdez, Alaska, where the gas would be liquefied at a facility other entities build, then shipped elsewhere.
Early estimates from a few years ago pegged the cost of the pipeline at about $26 billion, though former Gov. Sarah Palin, who touted progress toward a long-hoped-for natural gas pipeline as a major success of her short tenure, had cited estimates of up to $40 billion.
Gov. Sean Parnell called the filing "a significant milestone" toward achieving a project Alaskans have waited 30 years to advance.
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On the Net:
http://www.thealaskapipelineproject.com


Updated : 2021-06-25 12:32 GMT+08:00