ConocoPhillips says Mackenzie gasline should be built first; 2011 earliest for Alaska Highway pipeline

Kay Cashman, PNA publisher & managing editor

With the largest obstacle to building an 800-mile gas pipeline from Mackenzie Valley close to being removed, it appears the Canadian line has a good chance of coming online before a natural gas pipeline from Alaska’s North Slope. (See page 1 story).

It is the position of ConocoPhillips that it should.

In September, after the merger of Phillips Petroleum and Conoco, Petroleum News Alaska asked the newly merged company which gas pipeline it preferred. (See Sept. 22 story in PNA’s archives.)

Sharply divided prior to the merger on which Arctic natural gas pipeline should be built first, the newly merged ConocoPhillips told PNA there is “a natural sequence” which calls for the Mackenzie Delta gas pipeline to be built first, followed by the Alaska Highway gasline.

The company’s position has not changed in 2003, Kristi DesJarlais, spokeswoman for ConocoPhillips, told PNA.

“Both projects are needed to meet the forecasted demand growth for North America. Due to its smaller size and shorter length the Mackenzie line could start up in 2007 or 2008, assuming no significant regulatory delays. And the earliest possible date for Alaska gas to reach market is 2011,” she said.

In September, DesJarlais said the earliest the Alaska North Slope partners — ConocoPhillips, BP and ExxonMobil — expected an Alaska Highway gasline to come online was 2010.

She also said the Mackenzie Delta partners — ConocoPhillips, Shell and sister companies Imperial Oil and ExxonMobil — “expect first gas in 2008.”