Alaska's $65 Billion Natural Gas Pipeline
With natural gas supplies booming in North America, Alaska proposes a plan to reach new markets where supplies are short and the fuel could be sold at a higher price.
The natural gas supply glut in Alaska has inspired a group of energy companies to potentially invest up to $65 billion to build an 800-mile pipeline to export the stranded natural gas to Asia. For the rest of America, however, the proposal could mean that the cheap, abundant source of domestic energy could end up costing more as it reaches the global market.
Increasing supplies in the global market could put pressure on natural gas shipped from other ports, and the industry may have to expand exports of low-priced US natural gas.
Until further analysis on the pros and cons of exporting natural gas are conducted, the US Department of Energy has delayed action on proposals from numerous gas export facilities. That report won't begin until after the election.
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Energy giants like Exxon Mobil, BP Plc, ConocoPhillips and TransCanada Corp back the mega project to transport liquefied natural gas from the state—a project that would take over 10 years to complete due to its massive size and the legal, political and financial implications. LNG exports from Australia, East Africa, the US, Gulf Coast and Canada will pose competition to the new venture as they enter the global market.
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