Dallas Morning News | News for Dallas, Texas | Business: "The state of Alaska is pushing ahead with decades-old plans for a pipeline to carry natural gas to the lower 48 states as demand has risen and prices have soared.
Dallas investment bank Challenger Capital Group is expected to announce today that it will take the lead in arranging financing for the pipeline, expected to cost between $13 billion and $20 billion when it's finished in 2012.
'Ultimately, we'll help get more gas to the lower 48, which I would appreciate so my heating bill won't be so high,' said Challenger managing director Chuck Davis.
For three decades, Alaska has considered building a pipeline to bring to market natural gas produced in the North Slope area.
Those fields can produce 4.5 billion cubic feet of natural gas a day, or about 15 percent of U.S. demand, Mr. Davis said.
But depressed prices for natural gas left the project unprofitable. Now the financial incentive to bring natural gas to market has strengthened.
'It really didn't make much economic sense until we got into the current energy economy,' Mr. Davis said.
The state would work with major oil companies BP PLC, ConocoPhillips and Exxon Mobil to build a pipeline either to Alberta, Canada, or to Valdez, Alaska."
Monday, October 24, 2005
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