Denali Alaska Gas Pipeline On Track For 2010 Open Season

January 2010 Vol. 65 No. 1

The Denali Alaska Gas Pipeline is a joint venture formed by ConocoPhillips and BP in June 2008 to construct a 2,000 mile long pipeline from the Alaskan North Slope to Alberta, Canada, and if required, a 1,500-mile long pipeline from Alberta to Chicago.

According to a Jan. 12 update from the company, Denali expects to begin its open season process in April of 2010.

In the company’s Nov. 21, 2009, Project Update to the Alaska Legislature, Denali said the work to estimate the cost of the pipeline and the Gas Treatment Plant (GTP) is nearing completion. A Fluor/WorleyParsons joint venture (Arctic Solutions) is assisting with the GTP and Bechtel is assisting with the pipeline. Also, work is under way to prepare a credible cost estimate that will provide the basis for Denali’s open season commercial offering. Denali has also initiated pre-open season discussions with potential anchor shippers and is formulating open season plans.

The update notes that the company is working closely with the Federal Energy Regulatory Commission (FERC) and the Office of the Federal Coordinator (OFC) as well as other U.S. federal and Alaska state agencies to ensure a common understanding of the framework for the required regulatory approvals. In addition, Denali has entered into reimbursable services agreements with the U.S Bureau of Land Management (BLM) and the Alaska Department of Natural Resources (DNR) that will allow both agencies to work closely with Denali as it progresses its right-of-way efforts in Alaska.

According to the update, significant progress has also been made in Canada to advance and coordinate the regulatory review framework. The Major Projects Management Office (MPMO) has been designated by Canadian authorities as the single window coordinator for federal regulatory review for the project. Denali anticipates that this action will facilitate an efficient and expedited review process for a Canadian Certificate of Public Convenience and Necessity (CPCN).

The company’s outreach efforts in Alaska and Canada have reportedly remained strong and substantial and have been focused on communities, landowners, Alaska Native organizations and Canadian Aboriginal groups along the pipeline route. To date, Denali has participated in over 450 meetings with project stakeholders in the U.S. and Canada.

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