Less than two weeks after the state-backed TransCanada/Exxon natural gas pipeline updated Alaska on its plans, the competing BP/Conoco team with the Denali project did the same.
| A rendering of the natural gas processing plant that would accompany the Denali project.
According to the Anchorage Daily News:
In a 22-page report submitted to legislators, the Denali team said it has begun talking to potential gas shippers — companies such as BP and Conoco that hold leases on the North Slope — and is putting together plans for an open season next year.
So they’re talking to themselves about whether they’ll ship gas over their own pipeline? Seems like a pretty short conversation.
Another point in the report:
In response to recent speculation about dimming prospects for North Slope gas production in light of massive amounts of shale gas in the Lower 48, Denali emphasized that long-term forecasts of future gas prices have not changed much in the past six months.
The U.S. Energy Information Administration recently issued a report saying that oil and gas resources in the Arctic are difficult, expensive and controversial to develop, and that the globe’s “potentially large shale gas resource could significantly defer the future development of Arctic natural gas resources.”
Denali said that it is ultimately the North Slope gas shippers that will decide the viability of the pipeline, not forecasters at the EIA, who don’t “represent a consensus view of the market.”
It may be worth noting Conoco still has its liquified natural gas export facility in Kenai, Alaska, so even if gas remains cheap in the Lower 48 there could still be an international market for North Slope gas.
Here’s the full Denali report, and an update on the TransaCanada project.