Denali Files Open Season Plan for Alaska North Slope Gas Project

April 2010 Vol. 237 No. 4

Denali – The Alaska Gas Pipeline filed its open season plan with FERC April 7th. The filing outlines the commercial terms, technical plans, estimated costs and projected rates for the project.

The Denali Project consists of a gas treatment plant (GTP) on the Alaska North Slope, transmission lines from the Prudhoe Bay and Point Thomson fields to the GTP, and a mainline that will cross Alaska into Canada with its terminus at Blueberry Hill, Alberta. Also included will be delivery points along the route to help meet natural gas demand in Alaska and Canada. Denali’s cost estimate for the GTP and mainline is $35 billion. Denali expects the project to be in service in 2020.

Since 2008, “Denali has invested over $140 million dollars and over 600,000 man-hours to significantly advance this project,” said Bud Fackrell, president of Denali. “Our commercial offer includes competitive transportation rates and at the same time recognizes the significant risk that both Denali and its customers will take.”

The Denali project has been designed to deliver approximately 4.5 Bcf/d of natural gas to North American markets. The treatment plant at Prudhoe Bay will remove CO2 and dehydrate, compress and chill the gas in preparation for transport down the mainline. When completed, the Prudhoe Bay plant will be the largest facility of its kind in the world.

The mainline will consist of a 48″ pipeline and 15 compressor stations, 6 of which will be in Alaska. The mainline will run approximately 730 miles through Alaska and 1020 miles through Canada. Customers will be provided with multiple interconnecting pipeline options to transport gas to end markets in North America. Denali is planning to start its open season on July 6th, 2010. The open season will last a minimum of 90 days. Denali will also hold a simultaneous open season in Canada.

Denali is owned by subsidiaries of BP and ConocoPhillips.

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