Exxon, Conoco see new LNG markets with planned Alaskan pipeline - Houston Chronicle
Exxon, Conoco see new LNG markets with planned Alaskan pipeline
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A ConocoPhillips drilling site on the North Slope of Alaska. A $44 billion project would pipe gas the length of Alaska to an LNG terminal outside Anchorage stands to breathe new life into the state’s declining oil and gas industry by shipping the gas across the northern Pacific to South Korea and Japan. ERIN SCHAFF/NYT Show More Show Less A ConocoPhillips plane carrying workers to drilling sites on Alaska's North Slope. ERIN SCHAFF/NYT
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Caribou near Conoco Phillips oil pipelines, which are elevated to allow herds to pass beneath, on Alaska's North Slope. A planned $44 billion project would pipe gas the length of Alaska to an LNG terminal outside Anchorage. ERIN SCHAFF/NYT
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Oil pipelines leading from an oil drilling site on Alaska's North Slope. ERIN SCHAFF/NYT
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WASHINGTON – Oil companies have for decades pulled billions of dollars of natural gas from Alaska’s rugged North Slope, only to pump it back underground once it’s been separated from the crude oil they are seeking.
More than 800 miles from the closest ice-free port accessible to ships, the North Slope has no natural gas pipeline and thus no market for companies such as Exxon Mobil and Conoco Phillips to sell their gas into.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.