The Dunleavy administration has announced that BP and ExxonMobil are ready to invest in the Alaska gasline project again.
At the Alaska Oil and Gas Association Conference, Lt. Gov. Kevin Meyer announced that the two companies will put in $20 million to help move the project along past the federal permitting stage.
Gov. Michael Dunleavy was scheduled to make the remarks at the AOGA conference, but was delayed in Juneau due to a mechanical problem with the Alaska Airlines jet. Meyer delivered the news at the Dena’ina Center during the noon luncheon at the one-day conference.
During the Walker Administration, ConocoPhillips, BP, and ExxonMobil had backed out of the project, while Walker explored signing contracts with China to build the gasline to Nikiski and facilities on the North Slope and at tidewater for export of the gas to mainland China, primarily.
The companies remained engaged in providing technical help, however, and kept a positive outlook for selling gas to the project, if it is ever built. The announcement that they are putting dollars back in the project may be seen as a vote of confidence in the prospects for Alaska natural gas commercialization.