The Exxon Mobil Corp. and TransCanada Corp. have stated the proposed major pipeline to move natural gas from Alaska to the Lower 48 estimate the project will cost from $20 billion to as much as $41 billion a 23% to 58% budget increase, depending on the route.
The Alaska Pipeline Project details came Friday in a filing with federal regulators. The filing is a first step toward an open season, when Exxon and TransCanada will try to ink shipping deals with North Slope gas producers. TransCanada Corp. is working with Exxon Mobil Corp. to advance the pipeline. The state of Alaska has promised to reimburse TransCanada up to $500 million of the cost. In addition to the Alberta-bound pipeline, Exxon and TransCanada today said they will consider an alternative route that would haul North Slope gas to the Alaskan port of Valdez to be converted into Liguified Natural Gas (“LNG”) and shipped to the U.S. and international markets. The 800-mile pipeline to Valdez would cost $20 billion to $26 billion, according to the statement.
Bloomberg: Exxon, TransCanada Say Alaska Gas Pipeline Cost Soars
