Alaska Settlement Clears Way for New Gas Pipeline
Source: Wall street journal (Google title for full article
Exxon Mobil Corp., BP, ConocoPhillips, and the governor of Alaska have agreed to settle a long-running dispute on developing a key North Slope natural-gas field, clearing the way for a future gas pipeline and gas-export terminal.
Under terms of the agreement with Alaska, the companies agreed to start producing natural gas at their Point Thomson development, located east of the massive Prudhoe Bay field in Alaska, by May 2016 at the latest. They agreed to an initial output of 10,000 barrels of natural gas condensate and 200 million cubic feet of natural gas a day.
The companies said they will try to find buyers for the North Slope gas by 2016. Since natural gas can't be transported through the existing Trans-Alaska oil pipeline, getting that gas to market would involve building a new pipeline.
The companies are expected to commit to building a pipeline that will connect with a natural-gas-liquefaction terminal on Alaska's southern coast. From there, it would be turned into liquefied natural gas for export in tanker ships.
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