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Some already question BP-Conoco plan (Alaska): Some already question BP-Conoco plan

by Sean Doogan
Wednesday, April 9, 2008

ANCHORAGE, Alaska – The new gas line proposal from BP and Conoco Phillips has only been out for one day.  Already an article in a London newspaper is questioning the plan.

The Denali Plan calls for a 2,000 mile pipe to run 4 billion cubic feet of natural gas from Prudhoe Bay to Alberta, Canada.

The proposed pipe would only be extended to the Lower 48 from Canada if, in the company’s words, it is “required.”

That phrase has reporters London Financial Times wondering if Alaska’s gas will make a dead end in Canada, home to a giant oil sands project that needs huge quantities of natural gas to operate.

BP officials say their intention is to get Alaska gas to U.S. markets. Spokesman Steve Reinhardt says an additional line from Alberta to Chicago may not be needed, not because the gas will be used in Canada, but because there are already many pipelines carrying gas from Canada into the U.S. and they may be able to handle the Alaska gas as well.

Federal regulators will have to sign off on any gas line project.

U.S. Sen. Lisa Murkowski said Wednesday she is not worried Alaska’s gas will hit a dead end in Canada.

“I think we have made it clear from the federal level that the expectation is that this comes to the American market,” she said.

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