Tuesday, June 29, 2010

Eventually the Projects Must Join

From the Houston Chronicle: Rivals may join to develop gas pipeline from Alaska

A BP-ConocoPhillips venture planning to build a huge natural gas pipeline from Alaska to the Lower 48 is in early talks to join a competing project headed by Trans- Canada and Exxon Mobil Corp., according to a source familiar with the projects.

The BP-ConocoPhillips project, known as Denali, would likely be tabled as the two companies team with the TransCanada project, said the source, who is not authorized to discuss the status of the projects and requested anonymity. With a price tag up to $40 billion, it's long been thought that only one of the projects would be built.

BP and ConocoPhilipsDave MacDowell, a spokesman for Denali, said he wasn't aware of such discussions but noted that BP and Conoco- Phillips have said they are open to "considering involvement of any entity that adds value and takes on risk."

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Kelsey said...

I hope it's true. I guess we'll find out.

Kelsey said...

I hope it's true. I guess we'll find out.

Brett Chandler said...

Given BP's current situation, this shouldn't come as too big a surprise to anyone.

I agree, though, that it is a good sign. With all of the producers on-side for a single project, it improves the chance for success considerably.