Denali natural gas pipeline project scrapped

A ConocoPhillips and BP PLC joint venture has announced it is scrapping a $35 billion Alaska natural-gas pipeline project. Poor project economics and weak customer demand are cited as the reasons to cancel the Denali 1700 mi pipeline from Alaska’s North Slope to Alberta, Canada. The pipeline would have shipped about 4.5 billion cu/ft/day of gas, and the JV had already spent $165 million on the project.
The $41 billion pipeline project proposed by Exxon Mobile Corp and TransCanada Corp is, however, still on track, and enjoys financial backing and a license from the government of Alaska. TransCanada and Exxon Mobil’s 1700 mi pipeline from Prudhoe Bay on Alaska’s North Slope to Alberta would connect with TransCanada’s existing pipeline system that already carries gas into the U.S. That pipeline’s expected online date is roughly 2020, and is expected to ship up to 4.5 billion cu/ft/day of gas with expansion potential to 5.9 billion cu/ft/day.

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