ConocoPhillips and BP in April 2008 announced that they are joining forces to construct the Denali pipeline from the North Slope of Alaska to Alberta, Canada. Set to deliver 4 billion cubic feet of natural gas a day, Denali will stretch 2,000 miles.
BP and ConocoPhillips formed a joint venture, Denali – The Alaska Gas Pipeline, LLC to oversee the project, and an executive team has been appointed for the Alaska-based company.
The joint venture has pledged $600 million to reach the pipeline's first major milestone of an open season by the end of 2010. The open season will cement pipeline usage with long-term clients.
Two to three million tons of steel will be used to construct the second-biggest pipeline in North America. The Denali natural gas pipeline will be buried large-diameter pipeline that will operate at approximately 2,500 psi. Compressor stations will be located every 100 to 200 miles.
Moreover, the pipeline design has been left open to potentially add another 1,500 miles of pipeline from Alberta, Canada into US markets should the need arise.
In addition, the project includes the construction of a gas treatment plant located near a central gas facility and central compression plant at Prudhoe Bay. This new facility will remove carbon dioxide and other impurities from the gas and reinject the CO2, as well as dehydrate, compress and chill the gas.
At a cost of approximately $40 million, fieldwork began in the summer of 2008 to help with permit applications and cost estimates. The scope of the work included hydrology, archaeological and cultural studies, as well and land surveys, soil and air monitoring, and aerial photography and mapping.
FERC approved pre-filing requests for the Denali natural gas pipeline in June 2008. The company plans to file the formal application in 2011.
In a letter dated Aug. 1, 2008, the president of Denali - The Alaska Gas Pipeline, LLC confirmed that the company remains committed to constructing the pipeline and that the project continues to move forward.