Oil Patch Insider: Pals in pipeline partnerships
It’s one of those frequently unasked questions: Can anyone get along with ExxonMobil?
The poser was put in front of TransCanada’s Chief Executive Officer Hal Kvisle in an indirect, subtle fashion during a Feb. 23 conference call.
An analyst wanted to know how TransCanada manages the relationship as the two companies advance their proposal for the Alaska natural gas pipeline, given, he said, that ExxonMobil could accelerate the project or put it in the backburner at any point.
Kvisle — who refers to ExxonMobil simply as Exxon — acknowledged that Alaska is a “huge project” that would be a “very difficult thing if we didn’t have a well-understood and constructive relationship with Exxon that did not come together overnight.”
Bonding on Mackenzie He said the bonding was built over seven or eight years of joint efforts on the Mackenzie Gas Project, allowing the two companies to develop an understanding of “each other’s way of doing things,” such as handling challenging regulatory matters.
He said the end result is that the two “have great respect for each other.”
TransCanada “brings a lot of experience and some very current hands-on experience in the construction of large diameter pipelines,” notably the North Central Corridor pipeline in northern Alberta — a 180-mile, 42-inch system, built in testing winter conditions that Kvisle said probably represents the “closest analogy to building in Alaska that you’d find anywhere in North America today.”
He said the pipeline, originally estimated to cost C$923 million, has been brought to completion “significantly under budget and ahead of schedule.”
Exxon, he said, “contributes a lot to the gas processing plant design,” where TransCanada has no claims to expertise.
“We think Exxon is the best possible partner (for Alaska) as the largest holder of gas reserves on the North Slope and operator of Point Thomson, which will be a pivotal field in bringing Alaska gas to market,” he said.
“So far, so good, but it’s a big project,” Kvisle observed.
—Gary Park
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