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State of Alaska Responds to Denali Pipeline Announcement

May 17, 2011, Juneau, Alaska - Governor Sean Parnell and Department of Natural Resources Commissioner Dan Sullivan released the following statements on the announcement by BP and ConocoPhillips that the companies are terminating participation in the Denali Pipeline Project.

"While we dislike seeing the demise of any gas pipeline project before a gasline is underway, the silver lining here is that Denali's announcement frees ConocoPhillips and BP to independently become partners in another Alaska gasline project," Governor Parnell said. "While the competition that drove progress on this important project has been welcome, it has always been universally understood that only one project would be built."

The State of Alaska recognizes that alignment among all stakeholders - producer/shippers, a pipeline entity, and the state and federal governments - will be necessary to advance a project of this magnitude. 

The Alaska Gasline Inducement Act requires the state's licensee to continue to resolve regulatory and technical issues while continually narrowing the scope of economic uncertainty and risk. It is in that manner that a sound and durable fiscal framework can be reached regarding shippers' future tax obligations. Alignment behind the Alaska Pipeline Project - because of the license held by its partner, TC Alaska - provides the perfect opportunity to begin that discussion.

"Alaska has tremendous gas resources on the North Slope that need to get to market," Department of Natural Resources Commissioner Dan Sullivan said. "Completion of natural gas transportation infrastructure from the North Slope to commercial markets is a key to unlocking vast, untapped portions of our world-class basin to exploration and development-a basin that contains billions of barrels of oil and trillions of cubic feet of natural gas."

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