Sample News Story
Alaska LNG group sues ExxonMobil and BP over restricting access to gas
20/12/2005
Exxon Mobil and BP have been accused of violating Alaska’s antitrust laws by restricting gas sales in the region.
The Alaska Gasline Port Authority (AGPA) filed a lawsuit yesterday at the US District Court in Fairbanks, claiming that the two majors refused to sell it gas in order to undermine its proposed pipeline project from Alaska to the Lower 48, and keep the US gas price high. AGPA’s pipeline proposal was in direct competition with Exxon Mobil, BP and ConocoPhillips’ pipeline proposal that could be approved early next year (GM November 2005 p37).
AGPA said: “The Port Authority has been attempting to negotiate with the defendants for the purchase of gas for several years, but the defendants have refused to engage in any discussion of the price or terms for the sale of their North Slope gas. Walter Hickel, two-time former Alaska Governor, and former Secretary of the Interior said: “This historic lawsuit reveals a story of extreme corporate greed that has abused Alaska and punished the American consumer . . . Once the judicial system reviews the facts, I have total confidence it will bring this suit to a prompt and just conclusion.”
BP insisted that gas from the North Slope’s 35 Tcf of proved reserves was available to commercially viable projects and questioned whether the AGPA project fitted that criterion.