JUNEAU — One of two companies planning to build major natural gas pipelines in Alaska has dropped its bid, saying Tuesday that it didn’t get the agreements necessary to justify continuing.
The Denali-The Alaska Gas Pipeline announcement raises questions about the prospects for building a long-hoped-for line in Alaska. Denali had been competing to build a line with TransCanada Corp., which continues work though lawmakers have expressed frustration with the pace. TransCanada has been moving forward with state financial support, something Denali never received.
Like TransCanada, Denali has been working since last year to secure shipping agreements necessary to move its project forward. But Denali said it hadn’t received the commitments necessary to continue work and was cutting its losses.
In a statement, Denali President Bud Fackrell said the company could not spend the billions of dollars necessary to advance the project without binding agreements with shippers. Denali reported spending over $165 million in pursuing the project.
“Denali is ending its effort because of a lack of customer support,” Fackrell said. “Denali is a market-driven company.”
Denali is a joint venture of BP and ConocoPhillips.
Comments (2)
Add commentNot Surprising...
If it were my money, I wouldn't have invested a penny in this project. Even if it looks lucrative, all the years spent getting approval for this and that, permits for this and that, fights with the courts, fights with the EPA, then be unsure after all the decades getting approval will you still cut a profit? With the government system we have and how it is manipulated by every left wing screaming environmentalist group filing motion after motion after motion in our courts, it's amazing anything ever gets done.
If it were me I'd cut-and-run too. Actually, I would have never invested $165 much less $165 million.
A pipeline to the East Coast?
That was a pipedream if there ever was one. And far far to easy to shut down at any time along the thousands of miles of pipe.
Alaska projects for Alaskans first!
Now, let's take that 2b+ givaway of parnells and put it to good use!