Wednesday, April 9, 2008

Natural Gas: Up to $30 Billion Denali Pipeline Plans Set (BP; COP; XOM)


Two oil giants have announced plans to develop a multi-billion-dollar natural gas pipeline to move North Slope natural gas to United States markets through Canada.

Britain's BP PLC and Houston-based ConocoPhillips said yesterday they plan to spend $600 million (U.S.) in the first phase of the project over the next three years.

The facility – dubbed Denali, the Alaska Gas Pipeline – is to deliver natural gas via a 3,200- kilometre pipeline from the energy-rich North Slope in Alaska to a pipeline hub in Alberta.

If necessary, an additional 2,400-kilometre pipeline would be built to U.S. markets.

The pipeline would eventually move about four billion cubic feet of natural gas a day, or about 6 per cent to 8 per cent of daily U.S. consumption, the companies said....MORE

And from Dow Jones via CNN Money:
Exxon Mobil Confirms Invitation To Join Pipeline

And from KTTU (Anchorage):
Interview with Conoco Phillips and BP Alaska top execs

Conoco Phillips in Alaska President Jim Bowles and BP Alaska President Doug Suttles sat down with Channel 2 News Tuesday to discuss their recently-announced venture to build a natural gas pipeline.

Channel 2 News: So it appears you plan to move ahead without endorsement or partnership from the state. How far does this pipeline get without such partnership?

BP Alaska President Doug Suttles: First, I think this is a really exciting day. It's a real pleasure to announce this and we're pleased to be here with Conoco Phillips to take this thing forward.

I've been really encouraged by the reaction from the governor and the state team and from people across the country. I think they see this as an important milestone, an important step forward to get this project moving.

News: A requirement of the producers from day one has been fiscal certainty on future taxes from the state before a commitment on a pipeline. Are you now saying you're committing to a pipeline without that fiscal certainty?>>>MORE