By Yereth Rosen
ANCHORAGE, Alaska, July 6 (Reuters) - The $35 billion Denali pipeline project backed by BP Plc and ConocoPhillips launched a 90-day open season on Tuesday, as the it looks to gauge interest from shippers in moving gas from Alaska's North Slope to southern markets.
Denali, the company formed in 2008 by the two top North Slope oil-field operators, started concurrent open seasons for the Alaska and Canadian portions of a line proposed to run 1,750 miles (2,800 km) from Prudhoe Bay to Alberta. The line would transport 4.5 billion cubic feet of natural gas a day, according to Denali's proposal.
BP remains committed to the natural gas project despite the massive tab it faces from the Deepwater Horizon disaster in the Gulf of Mexico, a Denali spokesman said.
'BP's support for Denali has not changed,' said Dave MacDowell, Denali's director of media and corporate communications.
Once the open season ends on Oct. 4, it will probably be months before Denali knows if the process has produced solid commitments from potential shippers, MacDowell said.
'It's likely that even after the close of open season, there will be a period of negotiations between the pipeline company and the shippers (and) the customers,' he said. 'We would expect the discussions would continue into the first quarter of 2011.'
The Denali open season launch comes about two months after a partnership of TransCanada Corp and Exxon Mobil Corp started concurrent Alaska and Canada open seasons for a competing natural gas pipeline.
The TransCanada-Exxon project envisions a similar 1,700-mile line running from Prudhoe Bay to the British Columbia-Alberta border, costing as much as $41 billion. As with the Denali project, the TransCanada-Exxon group expects shipper bids to be contingent on numerous conditions that will be subject to future negotiations.
Reports last month said the rival projects were in talks to merge, since only one of the two lines is likely to proceed. But MacDowell reiterated that no agreement between the two is in the works.
'There are no negotiations going on between Denali and TransCanada,' he said. However, Denali has always been open to the idea of taking on new partners, he said.
'Our owners, BP and ConocoPhillips, have said repeatedly they would consider involvement of any party, of any entity, who could add value or take on project risk.'
Alaska's North Slope holds about 35 trillion cubic feet of proven conventional natural gas reserves, most of that within the Prudhoe Bay oil field.
(Editing by Rob Wilson) Keywords: DENALI/ (scott.haggett@thomsonreuters.com; Reuters Messaging: scott.haggett.reuters.com@reuters.net; +1 403 531-1622) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
ANCHORAGE, Alaska, July 6 (Reuters) - The $35 billion Denali pipeline project backed by BP Plc and ConocoPhillips launched a 90-day open season on Tuesday, as the it looks to gauge interest from shippers in moving gas from Alaska's North Slope to southern markets.
Denali, the company formed in 2008 by the two top North Slope oil-field operators, started concurrent open seasons for the Alaska and Canadian portions of a line proposed to run 1,750 miles (2,800 km) from Prudhoe Bay to Alberta. The line would transport 4.5 billion cubic feet of natural gas a day, according to Denali's proposal.
BP remains committed to the natural gas project despite the massive tab it faces from the Deepwater Horizon disaster in the Gulf of Mexico, a Denali spokesman said.
'BP's support for Denali has not changed,' said Dave MacDowell, Denali's director of media and corporate communications.
Once the open season ends on Oct. 4, it will probably be months before Denali knows if the process has produced solid commitments from potential shippers, MacDowell said.
'It's likely that even after the close of open season, there will be a period of negotiations between the pipeline company and the shippers (and) the customers,' he said. 'We would expect the discussions would continue into the first quarter of 2011.'
The Denali open season launch comes about two months after a partnership of TransCanada Corp and Exxon Mobil Corp started concurrent Alaska and Canada open seasons for a competing natural gas pipeline.
The TransCanada-Exxon project envisions a similar 1,700-mile line running from Prudhoe Bay to the British Columbia-Alberta border, costing as much as $41 billion. As with the Denali project, the TransCanada-Exxon group expects shipper bids to be contingent on numerous conditions that will be subject to future negotiations.
Reports last month said the rival projects were in talks to merge, since only one of the two lines is likely to proceed. But MacDowell reiterated that no agreement between the two is in the works.
'There are no negotiations going on between Denali and TransCanada,' he said. However, Denali has always been open to the idea of taking on new partners, he said.
'Our owners, BP and ConocoPhillips, have said repeatedly they would consider involvement of any party, of any entity, who could add value or take on project risk.'
Alaska's North Slope holds about 35 trillion cubic feet of proven conventional natural gas reserves, most of that within the Prudhoe Bay oil field.
(Editing by Rob Wilson) Keywords: DENALI/ (scott.haggett@thomsonreuters.com; Reuters Messaging: scott.haggett.reuters.com@reuters.net; +1 403 531-1622) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.