Alaskan Pipeline Project Dropped, Cannot Compete with Competitors

Proposed pipeline route ( AlaskaLNG ) via Mapbox

Proposed pipeline route (AlaskaLNG) via Mapbox

Three companies involved in the construction of the Alaskan natural gas pipeline project (AKLNG) announced the project is cancelled indefinitely due to the industry’s current economic structure.

The AKLNG, a $45 million to $65 million proposed project, would have transported natural gas from the North Slope to Cook Inlet.

ConocoPhillips, BP, and ExxonMobil, who are all involved in the project, separately stated they would not continue with the project given the market’s current state. Each company believes that because the pipeline struggles to compete with competitors in the global market, it does not make economic sense to continue the project for now.

The next step for the pipeline was the front-end engineering and design (FEED) phase, which had been scheduled for 2017 and cost roughly $2 billion.

Darren Meznarich from ConocoPhillips said returning to the project in the future is possible, but for now the project is not ready.

Source:
Energy Global