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 Alaska Senator Mark Begich by Dave Harbour, Anchorage Chamber of Commercequestion 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 testUS Department of Energy Seal and Header Photo 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

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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

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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

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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

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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

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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

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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 shippe