The Federal Energy Regulatory Commission (FERC) on Monday approved the Open Season Plan filed by Denali - The Alaska Gas Pipeline, LLC. Denali will commence its open season on July 6th, 2010.
"We are pleased that the FERC has approved our open season plan," said Bud Fackrell, Denali President. "This approval confirms that Denali's plan is complete and consistent with FERC requirements. We look forward to beginning our open season in July of this year."
The U.S. open season process is overseen by the FERC, and is an important milestone in the development of the pipeline project. During the open season, Denali will be soliciting multi-year, multi-billion dollar financial commitments from its potential customers. These commitments are essential to a successful project, and indicate the level of market interest in Alaska's North Slope natural gas.
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 and traverse through
Yukon Territory and British Columbia to its terminus at Blueberry Hill in western 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 Canada - The Alaska Gas Pipeline (West), Inc. will hold a contemporaneous open season for the Canadian
portion of the mainline. The Canadian open season will be subject to review by the National Energy Board
(NEB). Both the U.S. and Canadian open seasons are expected to end on October 4th, 2010.
"We have invested over 670,000 man-hours and $140 million dollars to develop a high-quality cost estimate
and execution plan. I believe our technical work and our commercial offer provide the best opportunity for
potential customers to evaluate the competitiveness of Alaska North Slope natural gas," said Fackrell.
Denali - The Alaska Gas Pipeline LLC and Denali Canada - The Alaska Gas Pipeline (West), Inc. are directly or
beneficially owned by subsidiaries of BP and ConocoPhillips.