by Christine Kim
Wednesday, April 7, 2010
ANCHORAGE, Alaska -- The Denali natural gas pipeline project announced its plans for an open season Wednesday. The project's president, Bud Fackrell, says it has filed paperwork with federal regulators.
The open season period is when the project tries to get gas producers to commit their gas to the pipeline, and is a big step when it comes to getting financing.
The Denali Project, backed by BP and ConocoPhillips, is starting out with some concerns, but says its cost estimates will boost shipper confidence.
The project's main line will cross Alaska and go into Canada, delivering 4.5 billion cubic feet of gas per day.
"I think the important point right now is: No one is waiting for Alaska gas, and the Alaska gas project first of all needs to be economic and it needs to compete with other projects. We will find out in the open season whether shippers believe this project will compete or not," Fackrell said.