Denali (BP/ConocoPhillips) says to drop Alaska gas pipe plan

[Viva_La_Revolution]

Source: Reuters

BP Plc (BP.L) and ConocoPhillips (COP.N) are dropping efforts to build a gas pipeline across Alaska, saying there is not enough demand from gas customers.

The companies' joint venture, called Denali, is to wind up operations and withdraw an application with the U.S. Federal Energy Regulatory Commission to build the $35 billion pipeline, according to a statement.

"Denali is ending its efforts because of a lack of customer support," said Bud Fackrell, Denali President, in the statement. "Since Denali began its efforts in 2008, the North American gas market has changed significantly, primarily as a result of the development of shale gas resources. This has created a very difficult environment in which to secure financial commitments from potential customers."

Plans to build a pipeline across Alaska, carrying gas from the North Slope producing area to North American markets, have been discussed for decades but are still unsettled. An opposing pipeline plan has been proposed by TransCanada Corp (TRP.TO) and partner Exxon Mobil Corp (XOM.N).

Read more: http://uk.reuters.com/article/2011/05/17/alaska-pipeline-idUKN1724564220110517?feedType=RSS&feedName=rbssEnergyNews