JUNEAU, Alaska — Two of the largest oil companies announced plans Tuesday to jointly develop a multibillion-dollar pipeline to move natural gas to U.S. markets.
Britain’s BP PLC and ConocoPhillips, based in Houston, said they plan to spend $600 million in the first phase of the project over the next three years.
The plan, dubbed Denali — The Alaska Gas Pipeline, is a 2,000-mile line from the energy-rich North Slope in Alaska to a hub in Alberta, Canada, which links to many markets.
If necessary, the project would also include a 1,500-mile pipeline to U.S. markets.
The pipeline would eventually move about 4 billion cubic feet of natural gas per day to markets, about 6 percent to 8 percent of daily U.S. consumption, the companies said.
No timeline was announced for construction, but the first phase involves project field work this summer and securing long-term commitments from gas companies to send gas down the pipeline.
Much of that commitment is likely to come from BP, ConocoPhillips and Exxon Mobil Corp. The three companies hold leases to nearly 35 trillion cubic feet of North Slope gas.
