By OGJ editors
HOUSTON, Oct. 24 -- ConocoPhillips has agreed to fiscal terms proposed by the state of Alaska for a natural gas pipeline to the Lower 48, Alaska Gov. Frank H. Murkowski said late Oct. 21 during a news conference in Fairbanks.
The state is in contract negotiations with the other two North Slope producers: BP PLC and ExxonMobil Corp.
"This is a significant milestone—and there are other positive signs on the horizon. Additional work remains," Murkowski said. "Until we have reached agreement with all three producer companies, I cannot discuss the details of the contract due to confidentiality."
On Oct. 6, Murkowski announced that he had delivered a contract term sheet to the producers. At that time, he said the state was "closer now than ever before" to reaching an agreement on a gas pipeline.
The gas pipeline that Murkowski and ConocoPhillips propose would run more than 3,000 miles through western Canada into the US Midwest and carry 4 bcfd of gas from the North Slope. The pipeline is expected to cost $20 billion.
Challenger Capital Group Ltd. of Dallas, along with Credit Suisse First Boston and UBS, were selected to serve as financial advisors for the state of Alaska's participation in construction of the gas line.