BP Plc and Exxon Mobil executives met with Sean Parnell, the governor of Alaska, on January 5th to discuss plans for a pipeline project. The pipeline project is said to aid in shipping natural gas from Alaska to Asia-Pacific markets.
The Associated Press reports that Houston-based ConocoPhillips said it would like to build a pipeline to transport liquefied natural gas (LNG) from the North Slope to the middle of the state. From here onwards the company would prepare the gas for export.
Sean Parnell has also expressed an interest in having multiple gas companies work on a pipeline project that will help export LNG to Asian markets and bring more jobs. However, TransCanada Corp. has an exclusive state license to build this type of pipeline, so all other oil companies must work under this agreement.
Tony Palmer, CEO of TransCanada, said the company has begun talks with BP, Exxon Mobil and ConocoPhillips for how to move forward with the pipeline.
BP and ConocoPhillips dropped plans to build a $35 billion Alaskan gas pipeline in May last year after failing to get enough customer interest. Increased shale-gas extraction has made the United States the world's largest producer of gas.
TransCanada Corp. and Exxon are behind a rival pipeline that is expected to cost as much as $41 billion.
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
article may not be suitable for all investors, and if in doubt, an investor should seek advice from
a qualified investment adviser. More
Related Companies