Three North Slope producers to study gas line options

The three major Alaskan producers said Wednesday they have agreed to study options for a pipeline to move gas from the North Slope to Canada and the Lower 48 states.

BP, Phillips Petroleum Co., and ExxonMobil Corp. will equally share the $75 million cost of the project. Activities over the next year will include conceptual design, project costing, permitting considerations, commercial structure, and overall viability.

They said a major focus will be on route evaluation and selection leading to the filing of applications with US and Canadian regulatory agencies.

Alaska Gov. Tony Knowles recently advocated an all-land route for the line, paralleling the oil pipeline from Prudhoe Bay field to Fairbanks, and then along the Alaska highway to pipeline connections in western Canada.

The companies said, "The participants believe that having the three major producers working together, combining their gas, financial, and technical resources, gives the project its best chance for success. Participation by other companies will be considered in the future."

They said the scope for the initial activities is still being discussed "and will primarily be a function of the level of activities associated with the route options."

They said staffing levels could range from 50 to 100 full-time equivalent personnel from the three companies, with significant contractor support. Most of the work will be done in Anchorage.

The companies plan to provide periodic updates on their efforts.