Exxon, Conoco, BP Plan $65 Billion Alaska LNG Project
By KEVIN HARLIN, INVESTOR'S BUSINESS DAILY
Posted 10/04/2012 04:35 PM ET
A planned liquid natural gas pipeline and export terminal in Alaska could cost more than $65 billion to build, an analysis by Exxon Mobil (XOM), ConocoPhillips (COP) and other partners said after months of study.
In a letter to Alaska Gov. Sean Parnell, the four called the plan a "megaproject of unprecedented scale and challenge" and said it would involve 1.7 million tons of steel, a peak construction workforce of up to 15,000, and a permanent workforce in the state of more than 1,000.
"I'm encouraged that the companies have made significant progress in advancing a project and an associated schedule for commercializing North Slope gas," the governor said in a statement. "Clearly, they have fully shifted their efforts to an Alaska LNG project."
The plan to ship natural gas overseas follows previous, competing plans to ship natural gas to the lower 48 states. Traditionally, energy companies have largely used natural gas to pump back into the ground to extract more oil.
The LNG project would be one of the world's largest, given the massive size of the North Slope reserve, which the governor's office put at 35 trillion cubic feet of reserves and more than 200 trillion feet of undiscovered but technically recoverable resources.