Sheila McNulty of the Financial Times reports that Alaska’s efforts to drive interest in a natural gas pipeline to the rest of the US have been slowed by the triple hit to the industry from the economic downturn, plunging commodity prices and the credit squeeze.
It has had to push back to September a conference planned this month to urge the oil and gas industry to invest in the state’s large pool of natural gas as part of a broader effort to push forward a long-held plan for a $30bn pipeline to carry the energy to other states.
While the Alaska Natural Gas Transportation Projects insists two competing proposals to build that massive pipeline, as well as in-state projects, are still on track, conference organisers recognised attendance would be hit.
Of the approximately 50 top petrochemical manufacturing companies targeted by the Alaska Natural Gas Development Authority, the majority expressed interest but were unable to attend because of travel restrictions or, in some cases, scheduling conflicts.
“As the conference approached, it became evident that with more time we could make more of an impact,” said Harold Heinze, chief executive of the Authority. “The rapidly changing landscape has necessitated some further research and planning.”
The conference was designed to encourage investment in the first access in more than a decade to a politically stable new source of high-value gases - ethane, propane, butane, pentane and methane.
Next year, the two companies proposing to build pipelines out of Alaska - TransCanada and Denali, a company owned by BP and ConocoPhillips - are to open bidding to secure customer commitments to use their competing pipelines. The conference was to build interest in that “open season”.
It has had to push back to September a conference planned this month to urge the oil and gas industry to invest in the state’s large pool of natural gas as part of a broader effort to push forward a long-held plan for a $30bn pipeline to carry the energy to other states.
While the Alaska Natural Gas Transportation Projects insists two competing proposals to build that massive pipeline, as well as in-state projects, are still on track, conference organisers recognised attendance would be hit.
Of the approximately 50 top petrochemical manufacturing companies targeted by the Alaska Natural Gas Development Authority, the majority expressed interest but were unable to attend because of travel restrictions or, in some cases, scheduling conflicts.
“As the conference approached, it became evident that with more time we could make more of an impact,” said Harold Heinze, chief executive of the Authority. “The rapidly changing landscape has necessitated some further research and planning.”
The conference was designed to encourage investment in the first access in more than a decade to a politically stable new source of high-value gases - ethane, propane, butane, pentane and methane.
Next year, the two companies proposing to build pipelines out of Alaska - TransCanada and Denali, a company owned by BP and ConocoPhillips - are to open bidding to secure customer commitments to use their competing pipelines. The conference was to build interest in that “open season”.