Wow, Wow, Wow -- After $165 Million -- BP and COP Call It Quits

Link here.

The Alaska Gas Pipeline announced that its open season efforts have not resulted in the customer commitments necessary to continue work on its Alaska North Slope gas pipeline project, which has an overall estimated capital cost of $35 billion (2009 dollars).

Denali will withdraw its Federal Energy Regulatory Commission pre-file application and, over the next few months, close out its operations.

Denali - The Alaska Gas Pipeline is owned by subsidiaries of BP and ConocoPhillips.

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Anon 1 provided his take on this story and additional background:

No surprise.

The real natural gas line is the AGIA TransCanada line, with Exxon on board.

COP/BP spent some money while claiming that they would build their own line. They wanted leverage in negotiations.

They virtually shut down many months ago.

The legislature went home without caving to them.

The real news will be what happens to the AGIA line - the real natural gas line project.

Background (I have not checked out all of these sites):

http://www.reuters.com/article/2011/05/17/us-alaska-pipeline-idUSTRE74G7Q020110517

http://www.thealaskapipelineproject.com/

http://www.thealaskapipelineproject.com/project_description

http://www.palintv.com/2010/07/31/palins-pipeline-progresses/

http://www.palintv.com/2008/01/21/governor-palin-apologizes-and-talks-about-agia-january-21-2008/

http://www.palintv.com/2007/07/03/presser-discussing-agia-request-for-applications-and-bill-signing-july-3-2007/

http://www.palintv.com/2007/11/30/presser-companies-that-have-submitted-applications-under-agia-announced-nov-30-2007/

http://www.palintv.com/2008/01/04/agia-completeness-review-galvin-palin-irwin-ruther/

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The obvious question is whether any natural gas pipeline from Alaska is viable right now.