Denali Makes Proposal

abarrelfull wrote on 09 Apr 2010 12:11
Tags: alaska bp canada conocophillips denali exxon gas pipeline transcanada usa

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As if the shale gas boom were not enough, Alaska has a surplus that it would like to shift to consumers. All that is needed is a few tens of billions of dollars for a gas pipeline, and all that lovely gas will come flowing down into the lower 48.

So who wants to spend such sums in today's challenging environment? Surprisingly there are two competing projects, involving three oil majors, and Canada's biggest pipeline company. This week, one of the projects filed its plan.

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 dollars (2009 U.S. dollars). Denali expects the Project to be in service in 2020.

The details of the project are staggering. For example

The pipeline will cross 600 Roads or Railroads, 130 Pipeline or Utilities and 750 Rivers & Streams. It will use nearly 6,000 vehicles and items machinery.

However, first they have to win the competition. The Alaska Pipeline Project, a venture of Exxon & Transcanada, filed their plan back in January.

According to the Houston Chronicle, everyone agrees that only one of these can get built, the question is which one?

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