The Alaskan natural gas pipeline project, AKLNG, has been put on hold. The US$45 - 65 billion project was set to transport natural gas via pipeline from the North Slope to Cook Inlet.
For now, the project has been cancelled due to the current slump in gas prices, resulting in an economic struggle and bleak market outlook. Three partners in the project 麻豆传媒映画� Conoco Phillips, BP and ExxonMobil 麻豆传媒映画� have also stated that they will not continue to undertake the project given its current structure.
Yet, Darren Meznarich from ConocoPhillips, explained that returning to the project could still be on the cards: 麻豆传媒映画淚麻豆传媒映画檓 never going to say it麻豆传媒映画檚 dead, but 麻豆传媒映画� we have to look at where we are economically. It麻豆传媒映画檚 not ready. It麻豆传媒映画檚 not economic right now.麻豆传媒映画�
All three companies believe that, as the pipeline struggles to compete with competitors in the global market, pursuing the project would not make sense economically.
The project麻豆传媒映画檚 next step 麻豆传媒映画� the front-end engineering and design (FEED) phase 麻豆传媒映画� was scheduled to commence in 2017 and cost approximately US$2 billion.
Upon discussing the FEED phase, Meznarich stated: 麻豆传媒映画淎s I麻豆传媒映画檝e discussed before with the committee, ConocoPhillips is unlikely to agree to directly participate in FEED for the project in 2017, due to the significant economic headwinds and other challenges we麻豆传媒映画檝e described.麻豆传媒映画�
Similarly, the other two partners agreed that the project would be not economically viable at present.
BP Alaska's Regional Manager, David VanTuyl, said: 麻豆传媒映画淭he project that we have been pursuing struggles to compete in the global marketplace, and we麻豆传媒映画檇 need a project that麻豆传媒映画檒l compete 麻豆传媒映画� We don't want to rush into the largest energy project in North America only to end up losing lots of money for all of us. So, right now is not the time to make that commitment [to enter FEED].麻豆传媒映画�
Bill McMahon, ExxonMobil, expressed in a recent interview that the company must 麻豆传媒映画渄rive down the cost of supply [in order] to be competitive.麻豆传媒映画� ExxonMobil will also not be funding or participating in the FEED phase of the project.
Though it has the potential to be revived in the future, for now, the pipeline project remains cancelled.
Edited from various sources by
Sources: , ,