FAIRBANKS, Alaska, Oct. 25 (UPI) -- Developments in shale gas in the Lower 48 do little to hurt the prospects of a pipeline for conventional natural gas from Alaska, an analysis found.
Denali, a joint venture between British energy company BP and U.S. supermajor ConocoPhillips, is examining interest from potential shippers for the pipeline from Alaska's North Slope. Critics question the need for the transnational pipeline given the abundance of shale gas in the Lower 48, however.
Denali spokesman Dave MacDowell said recently that pipeline plans were unchanged. Denali is designed to carry 4.5 billion cubic feet of natural gas per day.
Mark Myers, a coordinator for Alaska on gas pipelines, told delegates in Fairbanks that a study by consultant group Black & Veatch highlights positive long-term trends for conventional gas, the Fairbanks Daily News-Miner newspaper reports.
"You can look at the story as very good news or you can look at it as a competitor," he was quoted as saying. "You have a choice. But the bottom line is non-conventional gas requires an expensive amount of near-constant drilling."
Environmental groups complain the process needed to coax natural gas out of rock formations has a dramatic negative impact on the environment.
