Alaska Pipeline Project starts open season process

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Apr. 30 -- The Alaska Pipeline Project announced separate but coordinated open seasons conducted simultaneously in Alaska and Canada beginning Apr. 30.

Potential shippers will assess the Alaska Pipeline Project’s open season offering for 3 months from Apr. 30 through July 30. The project has provided information to potential shippers in Alaska and Canada on its anticipated engineering design, commercial terms, estimated projects costs, and timelines. Shippers will assess this information and determine their interest in making long-term, contractual commitments to reserve capacity on the pipeline.

The Alaska Pipeline Project open season will provide two options. The first option is a pipeline from Alaska’s North Slope, through Alaska, the Yukon Territory and British Columbia, to Alberta, a distance of about 1,700 miles, where the gas can be delivered on existing pipeline systems serving major North American markets.

The second option would transport gas from ANS to Valdez, a distance of about 800 miles, where it would be converted to LNG in a facility to be built by others and then delivered by ship to North American and international markets.

Both options would provide opportunities for Alaska communities to acquire gas from a minimum of five delivery points on the line. The Alberta option would additionally provide the opportunity for local gas deliveries in Canada.

A gas treatment plant (GTP) and Point Thomson Gas Transmission Pipeline are components of both options. The GTP would be near Prudhoe Bay ANS resources to treat gas for shipment on the line. A roughly 58-mile pipeline would connect gas supplies from Point Thomson to the plant and pipeline.

Only one of the two project options will advance and the Alaska Pipeline Project expects the results of the open season will determine the preferred option.

The Alaska Pipeline Project is a joint effort between TransCanada Corp. and ExxonMobil Corp. to develop a gas line under the Alaska Gasline Inducement Act.

TransCanada Alaska Co. LLC received approval Mar. 31 from the US Federal Energy Regulatory Commission for its open season to make binding commitments for initial capacity on the Alaska Pipeline Project (OGJ Online, Mar. 31, 2010).

Contact Christopher E. Smith at chriss@ogjonline.com.

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