Pipeline in the pipeline

News

BP and ConocoPhillips are to start building a gas pipeline in Alaska that will move approximately four billion cubic feet of natural gas per day. It will be the largest private sector construction project ever built in North America.

The two companies plan to spend $600m to reach the first major project milestone, an open season, commencing before the end of 2010.

Following a successful open season, a process during which the pipeline company seeks customers to make long-term firm transportation commitments to the project, the companies intend to obtain Federal Energy Regulatory Commission (FERC) and National Energy Board (NEB) certification and move forward with project construction.

The FERC and NEB certificates are the critical permits that provide government authorisation to construct a pipeline.

‘This project will allow us to keep our North Slope fields in production for another 50 years,’ said Tony Hayward, BP group chief executive.

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