HEAR SENATOR MURKOWSKI SPEAK ON OIL TAXES VIA C-SPAN AT 2:20 P.M. EDT. LOOK BELOW FOR BREAKING NEWS ON NEW GAS HYDRATE TEST WELL INSTALLATION! ALWAYS TUNE IN HERE FOR BREAKING NEWS AND COMMENTARY ON STATUS OF GAS PIPELINE PROJECTS!
Yesterday we addressed President Obama’s Saturday pro-domestic energy speech; today the ADN editorializes:
BOTTOM LINE: Let Shell explore, let Slope producers tap NPR-A — and keep a close watch. No 
question there is risk, and a lot of work to do
before production — if it pans out. But, as Sen. Mark Begich (NGP Photo) pointed out, our policy should be to develop with care. Exploration is a first step — and a chance for Shell to show that it’s operating with the best possible safeguards. Sen. Lisa Murkowski’s (NGP Photo) succinct summation of an American oil-and-gas energy policy hasn’t lost its currency: Produce more, use less. Alaska’s Arctic still has much to contribute on the production side.
Department of Energy. A fully instrumented well that will test
innovative technologies for producing methane gas from 
hydrate deposits has been safely installed on the North Slope of Alaska. As a result, the "Iġnik Sikumi" (Iñupiaq for "fire in the ice") gas hydrate field trial well will be available for field experiments as early as winter 2011–12. The well, the result of a partnership between ConocoPhillips and the Office of Fossil Energy’s (FE) National Energy Technology Laboratory, will test a technology that involves injecting carbon dioxide (CO2) into sandstone reservoirs containing methane hydrate. Laboratory studies indicate that the CO2 molecules will replace the methane molecules within the solid hydrate lattice, resulting in the simultaneous sequestration of CO2 in a solid hydrate structure and production of methane gas.
Calgary Herald by Dina O’Meara. Suspension of oil and gas production is spreading across northern Alberta as wildfires rage out of control. Oil and gas producers Monday evacuated workers and closed heavy oil facilities, pipelines and processing plants as emergency teams battled wind-fuelled fires that now cover more than 30,000 hectares. Canadian Natural Resources pulled 1,300 workers from two camps associated with its Horizon oilsands project outside of Fort McMurray as flames burned within 150 metres of one of its lodges. "We have no actual fire on our site per se, it’s still a ways away, but we’re just taking precautionary measures," vice chair John Langille told the Herald.
Our Friend, Thomas Maunder, Anchorage Chapter Secretary of the American Association of Drilling Engineers invites one an all to their annual BBQ. "On Friday afternoon", he says, "we will host our annual Fin, Feather, or Fur Food Festival at the bottom of the sledding hill at Kincaid Park. I invite all you to come and enjoy what has become a great day of good food and comradeship. The funds we hope to raise go to two main efforts. Every year since we began hosting this event, we have contributed to 3 of the local food charities. We support Bean’s Cafe, The Downtown Soup Kitchen and Kids’ Kitchen. Last year we donated $3000 to each organization. The remaining funds we direct to scholarships for engineering students already attending college and recent high school graduates. The format is that each team (we have 21 registered so far) will prepare and serve a menu item that began life with fins, feathers or fur. We have one group that brings in a 4th category — alligator. The success of the event has surpassed our wildest dreams. Please come and join us on the afternoon of the 20th. Call or message with any questions." Tom Maunder, Chapter Secretary, 907-529-1645.
Scroll down for Denali-The Alaska Gas Pipeline News Releases Commentary: We announced the termination of this project at 10:03 today {5-17-11} and took the precaution of copying all of the project’s website news releases below for posterity. One expects that the website at some point will be unceremoniously discontinued, too, and readers will find the impressive record of that project and its dedicated management memorialized here for future reference — as we have done for all of the historical gas pipeline projects beginning in the late 1960s. As a suggestion for students/researchers seeking information: put your search criteria into the local Google search bar, above left, and you will be led to all of our websites having information about your search terms. Thank you, Denali participants, for the important effort and know that the daunting political and financial challenges you faced were not of your making nor within your control. You aquitted yourselves with distinction and grace. -dh
Denali Discontinues Gas Pipeline Project
Download .pdf
Denali – The Alaska Gas Pipeline announced today that its open season efforts have not resulted in the customer commitments necessary to continue work on its Alaska North Slope gas pipeline project, which has an overall estimated capital cost of $35 billion (2009 dollars). Denali will withdraw its Federal Energy Regulatory Commission pre-file application and, over the next few months, close out its operations.
"Denali is ending its efforts because of a lack of customer support," said Bud Fackrell, Denali President. "Denali is a market-driven company. As such, we cannot spend the billions of dollars necessary to advance the project unless we have binding agreements with shippers. Although we have been in discussions with potential shippers for nearly a year and half, we have been unable to secure the financial commitments necessary to advance the project."
Work to date has been substantial. Denali has conducted extensive stakeholder consultations, set up multiple data rooms with detailed information, submitted comprehensive public filings, and provided access to Denali’s experts to help potential customers evaluate the project. Denali has spent over $165 million and invested more than 760,000 man-hours in its work effort.
Since Denali began its efforts in 2008, the North American gas market has changed significantly, primarily as a result of the development of shale gas resources. This has created a very difficult environment in which to secure financial commitments from potential customers.
"Although we are disappointed that Denali was not able to secure customer support, we are proud of our achievements," said Fackrell. "In particular, I want to thank the hundreds of Alaskan and Canadian companies and individuals who have worked on the project as well as the regulatory agencies, government officials, and the many Native Alaskan and Canadian Aboriginal groups who have supported our work effort over the last 3 years. Denali’s work has advanced the project further than at any point in the past and has provided potential shippers an opportunity to evaluate the competitiveness of North Slope natural gas in the North American marketplace."
Denali – The Alaska Gas Pipeline is owned by subsidiaries of BP and ConocoPhillips.
For additional information, contact Scott Jepsen, VP of Business Services, Denali – The Alaska Gas Pipeline LLC, at 907-865-4706.
Click here to access the FERC eLibrary, which contains all documents filed with FERC related to Denali’s natural gas transportation project (FERC Docket No. PF08-26).
Denali Discontinues Gas Pipeline Project
Download .pdf
Denali – The Alaska Gas Pipeline announced today that its open season efforts have not resulted in the customer commitments necessary to continue work on its Alaska North Slope gas pipeline project, which has an overall estimated capital cost of $35 billion (2009 dollars). Denali will withdraw its Federal Energy Regulatory Commission pre-file application and, over the next few months, close out its operations.
"Denali is ending its efforts because of a lack of customer support," said Bud Fackrell, Denali President. "Denali is a market-driven company. As such, we cannot spend the billions of dollars necessary to advance the project unless we have binding agreements with shippers. Although we have been in discussions with potential shippers for nearly a year and half, we have been unable to secure the financial commitments necessary to advance the project."
Work to date has been substantial. Denali has conducted extensive stakeholder consultations, set up multiple data rooms with detailed information, submitted comprehensive public filings, and provided access to Denali’s experts to help potential customers evaluate the project. Denali has spent over $165 million and invested more than 760,000 man-hours in its work effort.
Since Denali began its efforts in 2008, the North American gas market has changed significantly, primarily as a result of the development of shale gas resources. This has created a very difficult environment in which to secure financial commitments from potential customers.
"Although we are disappointed that Denali was not able to secure customer support, we are proud of our achievements," said Fackrell. "In particular, I want to thank the hundreds of Alaskan and Canadian companies and individuals who have worked on the project as well as the regulatory agencies, government officials, and the many Native Alaskan and Canadian Aboriginal groups who have supported our work effort over the last 3 years. Denali’s work has advanced the project further than at any point in the past and has provided potential shippers an opportunity to evaluate the competitiveness of North Slope natural gas in the North American marketplace."
Denali – The Alaska Gas Pipeline is owned by subsidiaries of BP and ConocoPhillips.
For additional information, contact Scott Jepsen, VP of Business Services, Denali – The Alaska Gas Pipeline LLC, at 907-865-4706.
Click here to access the FERC eLibrary, which contains all documents filed with FERC related to Denali’s natural gas transportation project (FERC Docket No. PF08-26).
Denali Concludes U.S. and Canadian Open Seasons
October 4th, 2010 – Anchorage, Alaska
Denali – The Alaska Gas Pipeline concluded its open seasons today for the U.S. and Canadian portions of the Denali Project. Both open seasons were conducted for 90 days.
“After two years of work, more than 700,000 man-hours and more than $150 million of private investment, I can report that Denali has received bids for significant capacity from potential shippers,” said Bud Fackrell, Denali President. “As expected, the bids include conditions, some of which are outside of Denali’s control. We will carefully evaluate these bids and their conditions and continue confidential negotiations with potential shippers in an effort to reach binding agreements,” said Fackrell.
“Denali is a market-based project, and our next steps will be determined by the commitments our customers are willing to make,” said Fackrell. “Based on what potential shippers have publicly stated in the past, we expect their evaluations to focus on the competitiveness of Alaska North Slope gas, including factors such as gas markets, growth in North American shale gas supplies, the Alaska fiscal framework and the status of Point Thomson leases.”
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, an Alaska Mainline that will run from the North Slope of Alaska to the Alaska-Yukon border, and a Canada Mainline that will transport gas from the Alaska- Yukon border to Alberta. Also included will be delivery points along the route to help meet local natural gas demand in Alaska and Canada. Denali’s cost estimate for the GTP and the Pipelines is approximately $35 billion dollars (U.S.).
Denali – The Alaska Gas Pipeline LLC is owned by subsidiaries of BP and ConocoPhillips.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735 or visit Denali’s website at www.denalipipeline.com. Denali’s open season plan can also be found on the FERC website, Docket PF08-26-000.
Denali Begins U.S. and Canadian Open Seasons
July 6th, 2010 – Anchorage, Alaska
The Alaska Gas Pipeline started its open seasons today for the U.S. and Canadian portions of the Denali Project. Both open seasons will last 90 days, ending on October 4th, 2010.
“The start of these open seasons marks the culmination of a tremendous work effort” said Bud Fackrell, Denali President. “We are pleased to have reached this important milestone and look forward to productive discussions with our potential customers for the U.S. and Canadian portions of the Project. The quality of our technical and commercial work will provide our potential customers with the information they need to consider in making the multiyear, multibillion dollar commitments necessary to move this project forward.”
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, an Alaska Mainline that will run from the North Slope of Alaska to the Alaska-Yukon border, and a Canada Mainline that will transport gas from the Alaska- Yukon border to Blueberry Hill, Alberta. Also included will be delivery points along the route to help meet local natural gas demand in Alaska and Canada. Denali’s cost estimate for the GTP and the mainlines is approximately $35 billion dollars (U.S.). Denali has invested over 670,000 man-hours and over $140 million dollars to prepare for the U.S. and Canadian open seasons.
Denali – The Alaska Gas Pipeline LLC is owned by subsidiaries of BP and ConocoPhillips.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735 or visit Denali’s website at www.denalipipeline.com. Denali’s open season plan can also be found on the FERC website, Docket PF08-26-000.
FERC Approves Denali Open Season Plan
June 7th, 2010 – Anchorage, Alaska
Today, the Federal Energy Regulatory Commission (FERC) 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.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735 or visit Denali’s website at www.denalipipeline.com. Denali’s open season plan can also be found on the FERC website, Docket PF08-26-000.
Denali Files Open Season Plan
April 7th, 2010 Anchorage, Alaska
Denali – The Alaska Gas Pipeline filed its open season plan today, April 7th, 2010, with the Federal Energy Regulatory Commission (FERC). 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 dollars (2009 U.S. dollars). Denali expects the Project to be in service in 2020. The Denali Project is an enormous undertaking with substantial risks and will be one of the largest private investments in the history of North America. “Since its inception in 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 billion standard cubic feet per day of natural gas to North American markets. The GTP at Prudhoe Bay will remove CO2 and dehydrate, compress and chill the gas in preparation for transport down the mainline. When completed, the GTP 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 anticipates FERC approval and 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.
“The Denali commercial offering is based upon a high quality cost estimate and includes terms that will provide customers decision points as the project progresses,” said Fackrell. “We 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 sales.”
Denali – The Alaska Gas Pipeline LLC is owned by subsidiaries of BP and ConocoPhillips.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735 or visit Denali’s website at www.denalipipeline.com. Denali’s open season plan can also be found on the FERC website, Docket PF08-26-000.
Denali Announces Open Season Plans
Anchorage, ALASKA January 12th, 2010. Today, Denali announced that it will start its open season process in April, 2010.
“I am pleased to announce that Denali will file its open season plan in April,” said Bud Fackrell, Denali president. “The results of the open season will provide an understanding of shipper requirements, which will be important as we consider our next steps. While our objective is a successful open season, we are concerned that shippers may hesitate to make the financial commitments needed to support the project due to issues outside of Denali’s control. These issues include increased gas supply in the Lower 48 market, the legal status of Pt. Thomson leases, and the lack of a long term fiscal regime for North Slope gas production. Our potential shippers have publicly indicated that resolution of these issues will be important in their decision to make the multi‐billion dollar commitments necessary to move the project forward. “
Denali has invested $130 million moving the project forward over the past 20 months, primarily in the areas of field work, engineering, and stakeholder engagement. These work products underpin a robust project plan and cost estimate, which are essential components of Denali’s commercial offering.
“Denali’s open season will provide potential shippers the best opportunity to evaluate the economics of North Slope natural gas sales to the Lower 48 market,” said Fackrell. “I expect that the quality and timing of our open season offering will be viewed positively in the marketplace.”
Denali ‐ The Alaska Gas Pipeline LLC is planning for the construction of a pipeline to deliver over 4 billion cubic feet of natural gas per day from the North Slope of Alaska to markets in the Lower 48, Alaska and Canada. Denali is owned by subsidiaries of BP and ConocoPhillips.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907‐865‐4735 or visit Denali’s website at www.denalipipeline.com.
Actual achievements point to Denali pipeline plan a success
Published in the Anchorage Daily News, July 13 2009
By Bud Fackrell
Since the formation of Denali one year ago by BP and ConocoPhillips, we have made tremendous progress in moving the Alaska gas pipeline forward, in spite of a very difficult economic environment.
We formed a first-class project team, with headquarters offices in Anchorage and Calgary. We received approval on our pre-filing request from the Federal Energy Regulatory Commission, conducted an extensive field work program, filed a right-of-way on federal lands with the Bureau of Land Management, reached out to stakeholders in the U.S. and Canada, and awarded major engineering contracts to Fluor/WorleyParsons and Bechtel.
In addition, Denali has established close working relationships with key regulatory agencies on both sides of the border, including the FERC, the Canadian National Energy Board, and the Office of the Federal Coordinator, among others. These are all necessary activities that move the Alaska gas pipeline project forward.
We have not been doing this alone. In addition to the more than 80 people who make up Denali’s core team, more than 30 Alaska and Canadian contractor companies have been working with Denali, bringing local expertise and ingenuity to this massive, complicated project.
Our core team in Anchorage is made up primarily of longtime Alaskans. These are your neighbors who have been part of the design, construction and operation of the North Slope oil and gas fields. We are building upon the many years of work already conducted by BP and ConocoPhillips on developing the Alaska Gas Pipeline. I am fortunate to have such a highly qualified, passionate team working this project.
Alaskans need the Alaska gas pipeline project to be a success, and even in this economic environment we are making significant progress. Denali has spent $100 million since we kicked off a year ago, and we are not receiving any reimbursement from the state of Alaska.
Our 2008 program was dominated by field work in Alaska and provided us with the data we need at this stage of the project. Our 2009 program will be expanded, and is focused on developing cost estimates and the commercial work necessary to support our open season in 2010.
During open season next year, Denali will ask potential customers (shippers) for multibillion-dollar financial commitments to ship gas down the Denali pipeline. We’ll use these contractual commitments to secure financing for the project.
Denali will be an open access pipeline. Open access means anyone has the opportunity to ship gas on Denali. This is a requirement of the FERC, which authorizes and regulates the pipeline. Federal law also has special provisions for an Alaska gas pipeline that facilitate access and expansion for new explorers. From Denali’s perspective, having new exploration volumes coming into the pipeline is important to its long-term success.
Through our technical work and commercial terms, we intend to be the preferred pipeline and attract the customers necessary to move the project through FERC certification and on into construction and operations.
At Denali, we continue to take a long-term view of the project and believe there is a place for Alaska’s gas in the North American market. The announcement by Exxon Mobil and TransCanada to work together on a competing project has not changed Denali’s plans or goals. We have accomplished much over the last year and are focused on doing the work to make the Denali project a success. We have the team that can get the job done right.
Bud Fackrell was appointed president of Denali – The Alaska Gas Pipeline LLC – in June 2008. The company is owned equally by BP and ConocoPhillips. He has worked in the oil and gas industry for over 34 years.
Denali – The Alaska Gas Pipeline LLC, Announces Pipeline Engineering Contract Award
Anchorage, ALASKA April 3, 2009. Denali – The Alaska Gas Pipeline LLC (“Denali”) has announced that it has awarded an engineering contract for the Gas Mainline Project to Bechtel, a world class engineering firm. The mainline project includes the pipeline and associated compressor stations from Alaskas North Slope to Alberta, Canada.
"I’m very pleased that Denali has been able to partner with Bechtel for this work,” said Kris Fuhr, Vice President and Mainline Project General Manager. “Bechtel has extensive experience designing and constructing major pipelines, including some of the worlds longest. Their history and understanding of design and construction in Alaska and Canada will provide a solid foundation for the project. We are pleased to have them on the team.”
The contract covers the services required during the preliminary engineering design phase of the mainline project. Major contract elements include pipeline engineering, compressor station engineering, design basis development, cost estimating, scheduling, and procurement planning as well as infrastructure and logistics assessments. The work to be performed by Bechtel will be used in the development of Denalis commercial terms for its 2010 open season.
Denali – The Alaska Gas Pipeline LLC is planning for the construction of a pipeline to deliver 4 billion cubic feet of natural gas per day from the North Slope of Alaska to markets in the Lower 48, Alaska and Canada.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735.
Denali – The Alaska Gas Pipeline LLC, announces Gas Treatment Plant (GTP) Contract Award
Anchorage, ALASKA February 10, 2009. Denali – The Alaska Gas Pipeline LLC (“Denali”) has announced that it has awarded an engineering contract for the Gas Treatment Plant (GTP) to Fluor WorleyParsons Arctic Solutions, a joint venture composed of world class engineering firms. Fluor WorleyParsons Arctic Solutions have engaged CH2MHill as their exclusive Alaska subcontractor to provide support services during this initial design phase.
"I’m delighted that Denali has been able to partner with Fluor WorleyParsons Arctic Solutions for this work,” said Dave O’Connor, Vice President and GTP General Manager. “These companies both have Alaskan operations, significant Arctic and North Slope experience, and possess unrivalled knowledge and capability in the design and construction of mega projects in Alaska. The Alaska content is further strengthened with the inclusion of CH2MHill to assist with constructability studies. CH2MHill is a well known and well-respected firm in Alaska."
The contract covers the services required during the initial design phase of the project for the GTP. Major contract elements include a series of technical studies, development of the project design basis, project execution planning, cost estimating, schedule development and other services.
The GTP, to be located on the North Slope, is an essential part of Denali’s project. It will remove carbon dioxide (CO2), water, hydrogen sulfide (H2S) and other impurities from the gas before it is shipped in the pipeline. It will also provide initial gas chilling and compression. The GTP will be the largest plant of its type on earth, and will have process modules weighing up to 9,000 tons.
Denali – The Alaska Gas Pipeline LLC is planning for the construction of a pipeline to deliver 4 billion cubic feet of natural gas a day from the North Slope of Alaska to markets in the Lower 48, Alaska and Canada.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735.
Denali Submits Right-of-Way Application to BLM
Anchorage, ALASKA November 12, 2008. Bud Fackrell, President of Denali – The Alaska Gas Pipeline LLC (Denali) announced today that Denali submitted a pipeline Right-of-Way (ROW) application on October 17 to the federal Bureau of Land Management (BLM) to cross federal land in Alaska. Approximately 1/3 of Denali’s 730-mile pipeline route in Alaska crosses land under the jurisdiction of the BLM. “This application initiates the formal pipeline ROW application process with the BLM ” said Fackrell. The Alaska portion of the Denali pipeline route generally follows the Dalton and Alaska Highways from Prudhoe Bay southeast to the Canadian border.
Denali – The Alaska Gas Pipeline LLC is planning for the construction of a pipeline to deliver 4 billion cubic feet of natural gas a day from the North Slope of Alaska to markets in the Lower 48, Alaska and Canada.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735.
Denali – The Alaska Gas Pipeline LLC, announces
Anchorage office space
Anchorage, ALASKA October 30, 2008. Denali – The Alaska Gas Pipeline LLC (“Denali”) has announced that it has reached an agreement to lease approximately 40,000 square feet of office space located at the new 188 W. Northern Lights Building in Anchorage. Denali will be able to accommodate up to 175 people at its new headquarters location.
“We are excited to have secured Denali’s headquarters office in Anchorage,” said Denali President Bud Fackrell. “This is another step in moving the project forward.”
Denali is planning for the construction of a pipeline to deliver 4 billion cubic feet of natural gas a day from the North Slope of Alaska to markets in the Lower 48, Alaska and Canada.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735.
Denali – The Alaska Gas Pipeline, opens Tok field office
to support summer work
TOK, ALASKA June 19, 2008. Denali – The Alaska Gas Pipeline has opened the doors to its first field office located in Tok, Alaska, and has launched summer fieldwork activities.
The partners expect to spend approximately $40 million on 2008 fieldwork. The results of the summer fieldwork will support permit applications and a high-quality cost estimate for the immense project. Getting to the fieldwork phase now is critical to meeting the target of a successful open season in 2010.
“This is yet another positive step for us as we move Denali – The Alaska Gas Pipeline forward,” said Denali President Bud Fackrell. “We anticipate about 60 people will be at work in the area this summer. The Tok field office will be a hub for much of our work this summer.” The work program will include :
- Cultural resource identification and research
- Hydrology studies, including stream and river crossings traversing 700 miles along the Denali route
- Soil and Air Monitoring
- Aerial photography and mapping
Hydrology, archaeological and cultural studies and land surveys have begun. Much of the work will take place along the routes of the Dalton, Richardson and Alaska highways.
Denali — The Alaska Gas Pipeline is owned by subsidiaries of BP and ConocoPhillips. Denali is currently being designed to carry about 4 billion cubic feet of natural gas a day from the North Slope of Alaska for delivery to Alaska, Canadian and Lower 48 markets. It would be North America’s largest private sector construction project.
Denali – The Alaska Gas Pipeline LLC Announces
Appointment of President
ANCHORAGE, June 12, 2008. Denali – The Alaska Gas Pipeline LLC today announced the appointment of Bud E. Fackrell as President. The project was announced on April 8 by ConocoPhillips and BP, and is focused on the development of a large diameter, high pressure natural gas pipeline from Alaska’s North Slope into North American markets.
Fackrell is a seasoned oil and gas industry executive, serving as Senior Vice President for BP’s Alaska Consolidated Team until today’s announcement. He had responsibility for all of BP’s operations on the North Slope except Prudhoe Bay (including Endicott, Liberty, Milne Point, and North Star & Badami). He held this post since his arrival in Alaska in August, 2006.
Fackrell has over 33 years of experience in the oil and gas industry. Prior to moving to Alaska, he was CEO and General Manager, Abu Dhabi Marine Operating Company, a large joint venture operating all the offshore oil and gas concessions in the Emirate of Abu Dhabi. Previous roles include Asset Delivery Manager for BP in the Rockies, where he developed significant experience with the North American natural gas business, General Manager – Gulf of Suez District, Gulf of Suez Petroleum Company in Egypt, and a number of other US and international postings.
Fackrell is married and has eight grown children and lives in Anchorage, Alaska.
BP and ConocoPhillips Join on the Alaska Gas Pipeline
ANCHORAGE, April 8, 2008. BP
BP and ConocoPhillips plan to spend $600 million to reach the first major project milestone, an open season, commencing before year-end 2010. Following a successful open season, a process during which the pipeline company seeks customers to make long-term firm transportation commitments to the project, the companies intend to obtain Federal Energy Regulatory Commission (FERC) and National Energy Board (NEB) certification and move forward with project construction. The FERC and NEB certificates are the critical permits that provide government authorization to construct a pipeline.
“This project is vital for North American energy consumers and for the future of the Alaska oil and gas industry. It will allow us to keep our North Slope fields in production for another 50 years,” said Tony Hayward, BP Group Chief Executive. “The Alaska gas pipeline will be an historic project and we are pleased to be working with ConocoPhillips to move it forward.”
“Our goal of bringing Alaska’s North Slope gas to market is becoming a reality. Denali – The Alaska Gas Pipeline project will deliver natural gas to meet North America’s growing energy needs,” said Jim Mulva, ConocoPhillips chairman and chief executive officer. “ConocoPhillips is pleased to be working with BP on this project; our companies have a long history of successfully developing projects on Alaska’s North Slope, in Canada, and around the world. The time is right to start moving this project forward.”
The project consists of a gas treatment plant on Alaska’s North Slope and a large-diameter pipeline that travels over 700 miles through Alaska, and then into Canada through the Yukon Territory and British Columbia to Alberta. Should it be required to transport gas from Alberta, the project will also include a large diameter pipeline from Alberta to the Lower 48 states. BP and ConocoPhillips will seek other equity partners, including pipeline companies, who can add value to the project and help manage the risks involved.
The companies already have assigned staff to the joint project team which will be ramping up over the coming months. A new project headquarters in Anchorage will be identified and a new company formed to manage the project. The project will provide jobs and business opportunities. ConocoPhillips’ previously announced intent to conduct summer field work in Alaska will be rolled into the joint effort.
BP is an integrated energy company with interests around the world. For more information, see www.bp.com. ConocoPhillips is an integrated energy company with interests around the world. For more information, see www.conocophillips.com.
Denali Concludes U.S. and Canadian Open Seasons
October 4th, 2010 – Anchorage, Alaska
Denali – The Alaska Gas Pipeline concluded its open seasons today for the U.S. and Canadian portions of the Denali Project. Both open seasons were conducted for 90 days.
“After two years of work, more than 700,000 man-hours and more than $150 million of private investment, I can report that Denali has received bids for significant capacity from potential shippers,” said Bud Fackrell, Denali President. “As expected, the bids include conditions, some of which are outside of Denali’s control. We will carefully evaluate these bids and their conditions and continue confidential negotiations with potential shippers in an effort to reach binding agreements,” said Fackrell.
“Denali is a market-based project, and our next steps will be determined by the commitments our customers are willing to make,” said Fackrell. “Based on what potential shippers have publicly stated in the past, we expect their evaluations to focus on the competitiveness of Alaska North Slope gas, including factors such as gas markets, growth in North American shale gas supplies, the Alaska fiscal framework and the status of Point Thomson leases.”
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, an Alaska Mainline that will run from the North Slope of Alaska to the Alaska-Yukon border, and a Canada Mainline that will transport gas from the Alaska- Yukon border to Alberta. Also included will be delivery points along the route to help meet local natural gas demand in Alaska and Canada. Denali’s cost estimate for the GTP and the Pipelines is approximately $35 billion dollars (U.S.).
Denali – The Alaska Gas Pipeline LLC is owned by subsidiaries of BP and ConocoPhillips.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735 or visit Denali’s website at www.denalipipeline.com. Denali’s open season plan can also be found on the FERC website, Docket PF08-26-000.
Denali Begins U.S. and Canadian Open Seasons
July 6th, 2010 – Anchorage, Alaska
The Alaska Gas Pipeline started its open seasons today for the U.S. and Canadian portions of the Denali Project. Both open seasons will last 90 days, ending on October 4th, 2010.
“The start of these open seasons marks the culmination of a tremendous work effort” said Bud Fackrell, Denali President. “We are pleased to have reached this important milestone and look forward to productive discussions with our potential customers for the U.S. and Canadian portions of the Project. The quality of our technical and commercial work will provide our potential customers with the information they need to consider in making the multiyear, multibillion dollar commitments necessary to move this project forward.”
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, an Alaska Mainline that will run from the North Slope of Alaska to the Alaska-Yukon border, and a Canada Mainline that will transport gas from the Alaska- Yukon border to Blueberry Hill, Alberta. Also included will be delivery points along the route to help meet local natural gas demand in Alaska and Canada. Denali’s cost estimate for the GTP and the mainlines is approximately $35 billion dollars (U.S.). Denali has invested over 670,000 man-hours and over $140 million dollars to prepare for the U.S. and Canadian open seasons.
Denali – The Alaska Gas Pipeline LLC is owned by subsidiaries of BP and ConocoPhillips.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735 or visit Denali’s website at www.denalipipeline.com. Denali’s open season plan can also be found on the FERC website, Docket PF08-26-000.
FERC Approves Denali Open Season Plan
June 7th, 2010 – Anchorage, Alaska
Today, the Federal Energy Regulatory Commission (FERC) 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.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735 or visit Denali’s website at www.denalipipeline.com. Denali’s open season plan can also be found on the FERC website, Docket PF08-26-000.
Denali Files Open Season Plan
April 7th, 2010 Anchorage, Alaska
Denali – The Alaska Gas Pipeline filed its open season plan today, April 7th, 2010, with the Federal Energy Regulatory Commission (FERC). 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 dollars (2009 U.S. dollars). Denali expects the Project to be in service in 2020. The Denali Project is an enormous undertaking with substantial risks and will be one of the largest private investments in the history of North America. “Since its inception in 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 billion standard cubic feet per day of natural gas to North American markets. The GTP at Prudhoe Bay will remove CO2 and dehydrate, compress and chill the gas in preparation for transport down the mainline. When completed, the GTP 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 anticipates FERC approval and 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.
“The Denali commercial offering is based upon a high quality cost estimate and includes terms that will provide customers decision points as the project progresses,” said Fackrell. “We 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 sales.”
Denali – The Alaska Gas Pipeline LLC is owned by subsidiaries of BP and ConocoPhillips.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735 or visit Denali’s website at www.denalipipeline.com. Denali’s open season plan can also be found on the FERC website, Docket PF08-26-000.
Denali Announces Open Season Plans
Anchorage, ALASKA January 12th, 2010. Today, Denali announced that it will start its open season process in April, 2010.
“I am pleased to announce that Denali will file its open season plan in April,” said Bud Fackrell, Denali president. “The results of the open season will provide an understanding of shipper requirements, which will be important as we consider our next steps. While our objective is a successful open season, we are concerned that shippers may hesitate to make the financial commitments needed to support the project due to issues outside of Denali’s control. These issues include increased gas supply in the Lower 48 market, the legal status of Pt. Thomson leases, and the lack of a long term fiscal regime for North Slope gas production. Our potential shippers have publicly indicated that resolution of these issues will be important in their decision to make the multi‐billion dollar commitments necessary to move the project forward. “
Denali has invested $130 million moving the project forward over the past 20 months, primarily in the areas of field work, engineering, and stakeholder engagement. These work products underpin a robust project plan and cost estimate, which are essential components of Denali’s commercial offering.
“Denali’s open season will provide potential shippers the best opportunity to evaluate the economics of North Slope natural gas sales to the Lower 48 market,” said Fackrell. “I expect that the quality and timing of our open season offering will be viewed positively in the marketplace.”
Denali ‐ The Alaska Gas Pipeline LLC is planning for the construction of a pipeline to deliver over 4 billion cubic feet of natural gas per day from the North Slope of Alaska to markets in the Lower 48, Alaska and Canada. Denali is owned by subsidiaries of BP and ConocoPhillips.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907‐865‐4735 or visit Denali’s website at www.denalipipeline.com.
Actual achievements point to Denali pipeline plan a success
Published in the Anchorage Daily News, July 13 2009
By Bud Fackrell
Since the formation of Denali one year ago by BP and ConocoPhillips, we have made tremendous progress in moving the Alaska gas pipeline forward, in spite of a very difficult economic environment.
We formed a first-class project team, with headquarters offices in Anchorage and Calgary. We received approval on our pre-filing request from the Federal Energy Regulatory Commission, conducted an extensive field work program, filed a right-of-way on federal lands with the Bureau of Land Management, reached out to stakeholders in the U.S. and Canada, and awarded major engineering contracts to Fluor/WorleyParsons and Bechtel.
In addition, Denali has established close working relationships with key regulatory agencies on both sides of the border, including the FERC, the Canadian National Energy Board, and the Office of the Federal Coordinator, among others. These are all necessary activities that move the Alaska gas pipeline project forward.
We have not been doing this alone. In addition to the more than 80 people who make up Denali’s core team, more than 30 Alaska and Canadian contractor companies have been working with Denali, bringing local expertise and ingenuity to this massive, complicated project.
Our core team in Anchorage is made up primarily of longtime Alaskans. These are your neighbors who have been part of the design, construction and operation of the North Slope oil and gas fields. We are building upon the many years of work already conducted by BP and ConocoPhillips on developing the Alaska Gas Pipeline. I am fortunate to have such a highly qualified, passionate team working this project.
Alaskans need the Alaska gas pipeline project to be a success, and even in this economic environment we are making significant progress. Denali has spent $100 million since we kicked off a year ago, and we are not receiving any reimbursement from the state of Alaska.
Our 2008 program was dominated by field work in Alaska and provided us with the data we need at this stage of the project. Our 2009 program will be expanded, and is focused on developing cost estimates and the commercial work necessary to support our open season in 2010.
During open season next year, Denali will ask potential customers (shippers) for multibillion-dollar financial commitments to ship gas down the Denali pipeline. We’ll use these contractual commitments to secure financing for the project.
Denali will be an open access pipeline. Open access means anyone has the opportunity to ship gas on Denali. This is a requirement of the FERC, which authorizes and regulates the pipeline. Federal law also has special provisions for an Alaska gas pipeline that facilitate access and expansion for new explorers. From Denali’s perspective, having new exploration volumes coming into the pipeline is important to its long-term success.
Through our technical work and commercial terms, we intend to be the preferred pipeline and attract the customers necessary to move the project through FERC certification and on into construction and operations.
At Denali, we continue to take a long-term view of the project and believe there is a place for Alaska’s gas in the North American market. The announcement by Exxon Mobil and TransCanada to work together on a competing project has not changed Denali’s plans or goals. We have accomplished much over the last year and are focused on doing the work to make the Denali project a success. We have the team that can get the job done right.
Bud Fackrell was appointed president of Denali – The Alaska Gas Pipeline LLC – in June 2008. The company is owned equally by BP and ConocoPhillips. He has worked in the oil and gas industry for over 34 years.
Denali – The Alaska Gas Pipeline LLC, Announces Pipeline Engineering Contract Award
Anchorage, ALASKA April 3, 2009. Denali – The Alaska Gas Pipeline LLC (“Denali”) has announced that it has awarded an engineering contract for the Gas Mainline Project to Bechtel, a world class engineering firm. The mainline project includes the pipeline and associated compressor stations from Alaskas North Slope to Alberta, Canada.
"I’m very pleased that Denali has been able to partner with Bechtel for this work,” said Kris Fuhr, Vice President and Mainline Project General Manager. “Bechtel has extensive experience designing and constructing major pipelines, including some of the worlds longest. Their history and understanding of design and construction in Alaska and Canada will provide a solid foundation for the project. We are pleased to have them on the team.”
The contract covers the services required during the preliminary engineering design phase of the mainline project. Major contract elements include pipeline engineering, compressor station engineering, design basis development, cost estimating, scheduling, and procurement planning as well as infrastructure and logistics assessments. The work to be performed by Bechtel will be used in the development of Denalis commercial terms for its 2010 open season.
Denali – The Alaska Gas Pipeline LLC is planning for the construction of a pipeline to deliver 4 billion cubic feet of natural gas per day from the North Slope of Alaska to markets in the Lower 48, Alaska and Canada.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735.
Denali – The Alaska Gas Pipeline LLC, announces Gas Treatment Plant (GTP) Contract Award
Anchorage, ALASKA February 10, 2009. Denali – The Alaska Gas Pipeline LLC (“Denali”) has announced that it has awarded an engineering contract for the Gas Treatment Plant (GTP) to Fluor WorleyParsons Arctic Solutions, a joint venture composed of world class engineering firms. Fluor WorleyParsons Arctic Solutions have engaged CH2MHill as their exclusive Alaska subcontractor to provide support services during this initial design phase.
"I’m delighted that Denali has been able to partner with Fluor WorleyParsons Arctic Solutions for this work,” said Dave O’Connor, Vice President and GTP General Manager. “These companies both have Alaskan operations, significant Arctic and North Slope experience, and possess unrivalled knowledge and capability in the design and construction of mega projects in Alaska. The Alaska content is further strengthened with the inclusion of CH2MHill to assist with constructability studies. CH2MHill is a well known and well-respected firm in Alaska."
The contract covers the services required during the initial design phase of the project for the GTP. Major contract elements include a series of technical studies, development of the project design basis, project execution planning, cost estimating, schedule development and other services.
The GTP, to be located on the North Slope, is an essential part of Denali’s project. It will remove carbon dioxide (CO2), water, hydrogen sulfide (H2S) and other impurities from the gas before it is shipped in the pipeline. It will also provide initial gas chilling and compression. The GTP will be the largest plant of its type on earth, and will have process modules weighing up to 9,000 tons.
Denali – The Alaska Gas Pipeline LLC is planning for the construction of a pipeline to deliver 4 billion cubic feet of natural gas a day from the North Slope of Alaska to markets in the Lower 48, Alaska and Canada.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735.
Denali Submits Right-of-Way Application to BLM
Anchorage, ALASKA November 12, 2008. Bud Fackrell, President of Denali – The Alaska Gas Pipeline LLC (Denali) announced today that Denali submitted a pipeline Right-of-Way (ROW) application on October 17 to the federal Bureau of Land Management (BLM) to cross federal land in Alaska. Approximately 1/3 of Denali’s 730-mile pipeline route in Alaska crosses land under the jurisdiction of the BLM. “This application initiates the formal pipeline ROW application process with the BLM ” said Fackrell. The Alaska portion of the Denali pipeline route generally follows the Dalton and Alaska Highways from Prudhoe Bay southeast to the Canadian border.
Denali – The Alaska Gas Pipeline LLC is planning for the construction of a pipeline to deliver 4 billion cubic feet of natural gas a day from the North Slope of Alaska to markets in the Lower 48, Alaska and Canada.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735.
Denali – The Alaska Gas Pipeline LLC, announces
Anchorage office space
Anchorage, ALASKA October 30, 2008. Denali – The Alaska Gas Pipeline LLC (“Denali”) has announced that it has reached an agreement to lease approximately 40,000 square feet of office space located at the new 188 W. Northern Lights Building in Anchorage. Denali will be able to accommodate up to 175 people at its new headquarters location.
“We are excited to have secured Denali’s headquarters office in Anchorage,” said Denali President Bud Fackrell. “This is another step in moving the project forward.”
Denali is planning for the construction of a pipeline to deliver 4 billion cubic feet of natural gas a day from the North Slope of Alaska to markets in the Lower 48, Alaska and Canada.
For additional information, contact Dave MacDowell, Director Media and Communications, Denali – The Alaska Gas Pipeline LLC, at 907-865-4735.
Denali – The Alaska Gas Pipeline, opens Tok field office
to support summer work
TOK, ALASKA June 19, 2008. Denali – The Alaska Gas Pipeline has opened the doors to its first field office located in Tok, Alaska, and has launched summer fieldwork activities.
The partners expect to spend approximately $40 million on 2008 fieldwork. The results of the summer fieldwork will support permit applications and a high-quality cost estimate for the immense project. Getting to the fieldwork phase now is critical to meeting the target of a successful open season in 2010.
“This is yet another positive step for us as we move Denali – The Alaska Gas Pipeline forward,” said Denali President Bud Fackrell. “We anticipate about 60 people will be at work in the area this summer. The Tok field office will be a hub for much of our work this summer.” The work program will include :
- Cultural resource identification and research
- Hydrology studies, including stream and river crossings traversing 700 miles along the Denali route
- Soil and Air Monitoring
- Aerial photography and mapping
Hydrology, archaeological and cultural studies and land surveys have begun. Much of the work will take place along the routes of the Dalton, Richardson and Alaska highways.
Denali — The Alaska Gas Pipeline is owned by subsidiaries of BP and ConocoPhillips. Denali is currently being designed to carry about 4 billion cubic feet of natural gas a day from the North Slope of Alaska for delivery to Alaska, Canadian and Lower 48 markets. It would be North America’s largest private sector construction project.
Denali – The Alaska Gas Pipeline LLC Announces
Appointment of President
ANCHORAGE, June 12, 2008. Denali – The Alaska Gas Pipeline LLC today announced the appointment of Bud E. Fackrell as President. The project was announced on April 8 by ConocoPhillips and BP, and is focused on the development of a large diameter, high pressure natural gas pipeline from Alaska’s North Slope into North American markets.
Fackrell is a seasoned oil and gas industry executive, serving as Senior Vice President for BP’s Alaska Consolidated Team until today’s announcement. He had responsibility for all of BP’s operations on the North Slope except Prudhoe Bay (including Endicott, Liberty, Milne Point, and North Star & Badami). He held this post since his arrival in Alaska in August, 2006.
Fackrell has over 33 years of experience in the oil and gas industry. Prior to moving to Alaska, he was CEO and General Manager, Abu Dhabi Marine Operating Company, a large joint venture operating all the offshore oil and gas concessions in the Emirate of Abu Dhabi. Previous roles include Asset Delivery Manager for BP in the Rockies, where he developed significant experience with the North American natural gas business, General Manager – Gulf of Suez District, Gulf of Suez Petroleum Company in Egypt, and a number of other US and international postings.
Fackrell is married and has eight grown children and lives in Anchorage, Alaska.
BP and ConocoPhillips Join on the Alaska Gas Pipeline
ANCHORAGE, April 8, 2008. BP [NYSE: BP] and ConocoPhillips [NYSE: COP] today announced they have combined resources to start Denali – The Alaska Gas Pipeline. The pipeline will move approximately four billion cubic feet of natural gas per day to markets, and will be the largest private sector construction project ever built in North America. The project combines the financial strength, arctic experience and technical resources of two of the most capable and experienced companies in the world.
BP and ConocoPhillips plan to spend $600 million to reach the first major project milestone, an open season, commencing before year-end 2010. Following a successful open season, a process during which the pipeline company seeks customers to make long-term firm transportation commitments to the project, the companies intend to obtain Federal Energy Regulatory Commission (FERC) and National Energy Board (NEB) certification and move forward with project construction. The FERC and NEB certificates are the critical permits that provide government authorization to construct a pipeline.
“This project is vital for North American energy consumers and for the future of the Alaska oil and gas industry. It will allow us to keep our North Slope fields in production for another 50 years,” said Tony Hayward, BP Group Chief Executive. “The Alaska gas pipeline will be an historic project and we are pleased to be working with ConocoPhillips to move it forward.”
“Our goal of bringing Alaska’s North Slope gas to market is becoming a reality. Denali – The Alaska Gas Pipeline project will deliver natural gas to meet North America’s growing energy needs,” said Jim Mulva, ConocoPhillips chairman and chief executive officer. “ConocoPhillips is pleased to be working with BP on this project; our companies have a long history of successfully developing projects on Alaska’s North Slope, in Canada, and around the world. The time is right to start moving this project forward.”
The project consists of a gas treatment plant on Alaska’s North Slope and a large-diameter pipeline that travels over 700 miles through Alaska, and then into Canada through the Yukon Territory and British Columbia to Alberta. Should it be required to transport gas from Alberta, the project will also include a large diameter pipeline from Alberta to the Lower 48 states. BP and ConocoPhillips will seek other equity partners, including pipeline companies, who can add value to the project and help manage the risks involved.
The companies already have assigned staff to the joint project team which will be ramping up over the coming months. A new project headquarters in Anchorage will be identified and a new company formed to manage the project. The project will provide jobs and business opportunities. ConocoPhillips’ previously announced intent to conduct summer field work in Alaska will be rolled into the joint effort.
BP is an integrated energy company with interests around the world. For more information, see www.bp.com. ConocoPhillips is an integrated energy company with interests around the world. For more information, see www.conocophillips.com.
Leave A Comment