Sharply divided prior to their merger on which Arctic natural gas pipeline should be built first, the newly merged Conoco and Phillips Petroleum have decided there is “a natural sequence” which calls for the Mackenzie Delta gas pipeline to be built first, followed by the Alaska Highway gasline.
Kristi DesJarlais, spokeswoman for ConocoPhillips, told PNA today that the company favors both Arctic gas pipelines “and are pursuing the required regulatory approval on each as aggressively as we can. We expect both to go forward.”
But ConocoPhillips believes the Mackenzie gasline will be built first, she said.
“The Mackenzie Delta partners have begun preparing regulatory applications. They expect first gas in 2008.”
The Alaska North Slope partners “have said they expect first gas in 2010, 2011,” DesJarlais said.
It is “important to point out that we think there will be enough market in North America to support both projects. … Both projects are viable,” she said.
When asked if ConocoPhillips has changed its route preference for the Alaska gasline, DesJarlais said no.
“We believe the southern route along the Alaska Highway has fewer unknowns and technical risks and we believe lower ultimate costs.”
Phillips Alaska Inc. (now ConocoPhillips (Alaska) Inc.), along with BP Exploration (Alaska) and ExxonMobil, is one of the three major Alaska North Slope gas owners. Conoco Canada (now ConocoPhillips Canada), along with partners Shell Canada and sister companies Imperial Oil and ExxonMobil Canada, is one of four owners of the Mackenzie Delta gas.