Saturday, July 3, 2010

Denali Open Season Starts Tuesday 6 July 2010

See the detailed FERC filing (LINK)

The link contains one letter and three volumes of open season information. The In-State Demand Study is in Volume II- Good reading if your #1 issue is In-State industrial development and the $8 Billion Bullet Line.

Volume III has technical stuff, and the cost estimate ($35.5 Billion)

Some quick ratios to think about: $35.5 Billion moves 4.5 BCFD ($7.9 per cfd capacity) vs. $8 Billion for up to 0.5 BCFD for a bullet line ($16 per cfd capacity). The economies of scale work for the big line and against the Bullet Line.

Good Luck Denali ! Let's start building this damn thing!

Note: the competing TransCanada / ExxonMobil Alaska Pipeline Project open season is in progress and end 30 July 2010. Good luck to you guys too - I looking forward to the Kumbaya moment when all the producers join together.

2 comments:

Brett Chandler said...

Well, with the report that BP is selling its North Slope properties to Apache, I'm guessing that "Kumbaya moment" is coming sooner rather than later.

We can only hope :)

AK Engineer said...

Yeah I think we are in the utter chaos zone with Apache / XOM take over talk of BP's assets.

I'll go out on a limb and say that somebody will pick up some sweet reserves for an even sweeter price.

Let the market do it's magic.