Deal announced on Point Thompson leases, gas line partnership - Anchorage Daily News
Wow.
I haven't posted in a while, because what little "news" there's been to report on the Northern Pipelines front has been scarce, and what little there's been is discouraging.
This one's a biggie, though, and definitely deserves mention. Essentially, the State of Alaska has been embroiled in a big fight with Exxon Mobil for years over oil and gas leases on Point Thomson. At one point, the state angrily withdrew Exxon Mobil's leases because they didn't seem to be doing anything to develop the field, and the whole issue has been in court since then.
Now, not only has that been settled (potentially leading to huge new oil and gas reserves for Alaska), but part of the deal sees BP and ConocoPhilips join Exxon Mobil as partners in TCPL's proposed gas line. BP and ConocoPhilips had, until last year, been proposing their own, Denali project, but now there is really no competition for TCPL.
There DOES remain some question as to whether any gas pipeline project is economical, though. Current gas prices are low, but then the reserves in shale gas formations are being revised down considerably, so it's possible that the overland pipeline might see some renewed interest. Alaskans themselves are keen on a line to Valdez, though, and then the question becomes whether either line works, and which has the better numbers...
Stay tuned!
