Future Role Of Natural Gas And Shale Revolution Dominate At P&GJ’s 2010 Pipeline Opportunities Conference

P&GJ’s 2010 Pipeline Opportunities Conference
By Rita Tubb, Managing Editor | June 2010 Vol. 65 No. 6

The primary project would be a $32-41 billion, 1,700-mile pipeline from Prudhoe Bay that would connect with TransCanada's existing pipeline system in Alberta that carries natural gas into the U.S. The alternative 800-mile pipeline proposal would ship natural gas to a port in southern Alaska where it would be liquefied for transport to Asia and other foreign markets. TransCanada and ExxonMobil plan to build one or the other project, based on which one gets the most interest from potential customers.

The long-haul pipeline will be capable of shipping up to 4.5 Bcf/d of natural gas and could be expanded to carry 5.9 Bcf/d.

TransCanada’s project competes directly with a pipeline planned by a joint venture owned by BP and ConocoPhillips called Denali which filed its open season plan on April 7 with the FERC. Both projects call for being in service around 2020.

Other highlights of the session included presentations by Mark Myers, Coordinator, Alaska Gasline Inducement Act, and Vice Admiral Thomas Barrett, USCG (Ret), Deputy Director, Office of Federal Coordinator for Alaska Natural Gas Pipeline Projects. Both speakers provided informative presentations on the timelines and challenges involved in completing the planned Alaskan pipeline projects that will open up the North Slope and other Alaskan gas basins to the market.

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In the day’s final session, executives from Spectra Energy, El Paso Corporation, Kinder Morgan and Alliance Pipeline focused on pipeline projects scheduled for service in 2010 and beyond.

Spectra Energy’s General Manager Brian McKerlie said over the next five years his company would be spending $5 billion on expansions and that work finished up last year on a three-year, $3 billion expansion program.

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The accompanying slides show Spectra’s developing pipeline and storage projects under development and on the horizon that McKerlie discussed in detail.

In describing the company’s Temax /Time III Project, McKerlie noted that it is designed to move Rockies natural gas further east from Clarington, OH where it interconnects with the Rockies Express Pipeline. “We’re going to move 455 Mcf/d from Clarington in from Oakford, which is a storage area, to eastern markets,” he said.