The concept of huge gas pipeline that snakes all the way from Alaska’s North Slope across Canada to the lower American states draws closer to being a reality. Alaska’s new Governor Sarah Palin, has announced that she will submit her natural gas pipeline legislation within two weeks.
Anyone interested in building the line will have to submit an application within six months including a “detailed description” of the project, including a timeline and a budget. Meanwhile estimated costs of the gas line has increased by $10 billion to $30 billion.
“It’s probably going to be in that 30s ballpark range,” says Craig Haymes, from Exxon Mobil Corp. one of the three companies who were in negotiation with previous Alaskan Governor, Frank Murkowski, who was extremely close to the oil industry. “What bothers me is that Alaska tried it Exxon’s way” argues Palin. “The result was a contract that is not viable. It did not have the support of the public or the Legislature.”
BP, Exxon Mobil and Conoco Phillips are all said to be interested in building the gas pipeline. “For BP, the North Slope is the largest known but undeveloped resource in our portfolio, and frankly, we’d like to get rid of that idea,” said David Van Tuyl, a representative from BP. “BP’s future is directly linked to the future of the Alaska gas pipeline.”
If it is, I hope the sort out their corrosion problems before they build it, otherwise the Canadians might be in for a nasty shock.