Rep. Young Reacts to Denali’s Announcement Not to Pursue Natural Gas Pipeline
I commend ConocoPhillips and BP for taking the initiative to invest their resources in this project and for their interest in developing a gas pipeline. While it is disappointing that they have decided not to pursue the project further, I can understand that these companies must make decisions based on economics and what can be profitable for them. I still believe that Alaskan gas can be developed and will do everything in my power at the federal level to help Alaska make it a reality.
The Denali Alaska Gas Pipeline, owned by subsidiaries of BP and ConocoPhillips, announced today it will pull out of Alaska’s North Slope over the coming months due to a “lack of customer support.”
Denali President Bud Fackrell described Denali as “a market-driven company” and said it can’t afford to continue investing the “billions of dollars necessary to advance the project” without the necessary financial commitments and support from shippers.
According to the company, Denali will withdraw its Federal Energy Regulatory Commission pre-file application.
The company said its open season did not result in the “customer commitments necessary to continue work on its Alaska North Slope gas pipeline project, which has an overall estimated capital cost of $35 billion [in 2009 dollars].”
Citing “substantial” work-to-date, Denali said it has spent “over $165 million and invested more than 760,000 man-hours in its work effort.”
This story is still developing.