BP in Alaska: Alaska gas pipeline gains momentum with Denali

In April 2008 BP and ConocoPhillips formed Denali — The Alaska Gas Pipeline LLC, and got the long-awaited Alaska natural gas pipeline project under way.

In June 2008, BP Alaska’s Bud Fackrell was named President of Denali, and throughout the summer other top Denali executives were selected.

Denali headquarters is in Anchorage and a small field office was opened in Tok, Alaska, near the proposed pipeline route. By the end of the year, a third Denali office was opened in Calgary, Alberta, Canada.

The largest private sector project in North American history, Denali is estimated to cost more than $30 billion. It will extend about 2,000 miles from Alaska’s North Slope to Alberta, British Colombia, Canada, with a possible 1,500-mile leg to U.S. markets.

The large-diameter (48-to 52-inch), high-pressure pipeline will carry about 4 billion cubic feet of natural gas a day from the North Slope for delivery to Alaska, Canada and lower 48 markets. At that rate it will supply about 6 percent to 8 percent of U.S. consumption. Studies of long-term in-state gas needs will begin in 2009 and at least five gas take off points are planned.

Design features: A major component of the project will be construction of a gas treatment plant on the North Slope that will remove carbon dioxide and other impurities. The plant will dehydrate, compress and chill the gas for its shipment through the pipeline. The new facility will dwarf the existing gas facilities, the Central Compression Plant and Central Gas Facility, which are already the largest of their kind in the world.

Most of the chilled pipeline would be buried, while segments through earthquake-prone areas and major river crossings would be built above ground. Above ground portions would be placed on supports similar to those used for the trans-Alaska oil pipeline.

Upgrades of key infrastructure in Alaska will be required, mainly on bridges, highways and ports needed to support heavy loads during construction. The one-inch-thick-walled pipe will be very heavy and loads on highways and bridges will be substantial.

At peak construction, the pipeline project will require 10,000 construction workers.

—Frank Baker