Conocophillips Proposes Natural Gas Pipeline From Alaska

Friday, November 30th 2007, 9:44 am
By: News On 6

HOUSTON (AP) - Oil exploration and production company ConocoPhillips said Friday it has proposed to develop a multibillion-dollar pipeline that would transport natural gas from Alaska to the lower 48 states and Canada.

The company said it's ``prepared to make significant investments, without state matching funds, to advance this project.''

ConocoPhillips spokesman Charlie Rowton said the company's best estimate for the entire project, including the pipeline from Alaska's North Slope to Chicago, is between $25 billion and $42 billion.

The pipeline would provide an important avenue for bringing Alaska's massive stores of natural gas to U.S. markets that rely on it for fueling home heaters and other uses. It would move about 4 billion cubic feet of natural gas per day.

In a statement, ConocoPhillips Chairman and Chief Executive Jim Mulva said the company hopes to work directly with the state to advance the project as quickly as possible.

``We also expect to approach other parties to explore ways through which their participation could add value to this effort,'' Mulva said.

Specifically, Rowton said Exxon Mobil Corp. and BP PLC would be logical participants as the project moves forward. ``We think it makes sense for their to be other owners,'' he said.

ConocoPhillips said it is already gathering data to support the pipeline permit application.

During the initial phase of the project, Bechtel Oil, Gas and Chemicals Inc. will provide construction and design support, the company said.

Shares of ConocoPhillips rose 41 cents to $79.23 in morning trading Friday. The shares have traded in a range of $61.59 to $90.84 in the past year.