Oil Prices Rise As BP Shuts Pipeline

Project partners and the State of Alaska filed a permit application with FERC on Friday to export an estimated 35 trillion cubic feet of natural gas reserves from Alaska’s North Slope. The mammoth project could cost between $45 billion and $65 billion and would involve constructing an 800-mile pipeline in addition to gas processing, liquefaction and export infrastructure.

Read detailed Breaking Energy coverage of the proposed project here and here.

Significant challenges remain, but the companies that include lease holders ExxonMobil, BP and ConocoPhillips along with pipeline company TransCanada have recently taken steps to advance project development.

The application reportedly refers to the undertaking as the “largest integrated gas/LNG project of its kind ever designed and constructed.” – Reuters via Rigzone

“Filing of an export application is a critical step in commercializing North Slope natural gas,” Steve Butt, an ExxonMobil employee who serves as the senior project manager, said in a statement according to the same article.