In a status report released to state legislators last week, developers of Denali--The Alaska Gas Pipeline stated the project remains on track to meet a key milestone: an open season in 2010. The project is funded 100% by its owners, BP and ConocoPhillips.
In 2008, Denali reportedly spent $55 million to advance the project in the areas of field data gathering, engineering, regulatory engagement and stakeholder outreach. Despite the down turn in the economy, Denali stated that its 2009 program will be broader in scope than the 2008 program and will represent an increase in spending of approximately 50%.
Denali also noted that it has moved into its headquarters in mid-town Anchorage and has its core team in place. In addition, it has contracted either directly or through its owners with 27 Alaskan businesses to support its work effort. The project owners also are sponsoring several active training programs.
In addition, Denali has created an extensive outreach program to
incorporate input to the project from Alaska Native groups and other stakeholders.
Denali added that it has made significant progress in Canada, having established and staffed its Calgary office, completed a number of assessment studies, initiated field work, expanded its engagement with First Nations and other groups along the pipeline route. It has also opened a dialogue with key federal, provincial, territorial, and local agencies and departments.
The Alaska Gas Pipeline project will be the largest private sector construction project in North American history and is unrivaled in scale, cost and complexity. Despite the recent economic turmoil, Denali assured lawmakers that it remains focused on the long-term prospects of the project.