MOSCOW (MRC) -- ExxonMobil and its partners BP and ConocoPhillips have decided not to move forward with their JV, Alaska LNG, as they believe that current market conditions make the project unprofitable, reported The Wall Street Journal.
The project is estimated to cost USD45 B-USD65 B.
The Alaskan state government, which already owns a 25% stake in the project, bought from TransCanada Corp., are still looking to move the project forward.
In a statement, Governor Bill Walker said, "I was very pleased to see that there remains a strong potential for an economically viable Alaska LNG project, even at USD45 /bbl oil prices…" He also stated that, "Alternate ideas such as third party investors, project financing and other advantages resulting from a state led project could make the difference."
An ExxonMobil spokesman stated that the company has no interest in further development of the project, which they see as, "transitioning to a state project."
We remind that, as MRC informed previously, in mid-February 2016, US petrochemical producer ExxonMobil Chemical completed the start up process of its 820,000 m tpa ethylene complex in Beaumont, Texas. The Beaumont complex has two equal-sized steam cracking units with total combined ethylene capacity of 820,000 mtpa. "Operations are normal and we anticipate no impact to production," spokesman Todd Spitler said in confirming market reports of a successful restart. The unit shut January 21 after an area wide power outage. The startup process started within a week of the outage. The Beaumont cracker has an ethylene capacity of 900,000 tonnes/year.
ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.