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FERC: Infrastructure a challenge for Alaska gas pipeline project FERC tells Congress greater progress needed in improving or repairing highways, bridges, ports, airstrips prior to construction Kristen Nelson Petroleum News
Both Denali – The Alaska Gas Pipeline and TransCanada Alaska have pre-filed and both intend to hold open seasons in 2010, the Federal Energy Regulatory Commission said in its eighth report to Congress on the Alaska gas pipeline.
FERC said there has been “further progress towards development of an Alaska natural gas pipeline over this reporting period,” and detailed work by both Denali and TransCanada.
But, FERC concluded, recent infrastructure needs assessments by Denali, TC Alaska and the Alaska Department of Transportation and Public Facilities “indicate that a large number of projects to improve or repair highways, bridges, ports and airstrips must be completed prior to initiating construction of an Alaska natural gas pipeline by either Denali or TC Alaska.”
These are long-term efforts requiring permitting and funding, and FERC said “greater progress in this area must be made to avoid conflicting with the projected timeline for pipeline construction.”
Third-party contractor for Denali FERC staff selected Argonne National Laboratory as the third-party contractor to provide assistance in preparing the environmental impact statement for Denali in mid-May. In June, FERC staff met in Calgary with Denali, the National Energy Board of Canada and Argonne to review Denali’s project in Canada and how those efforts coordinate with required field work in Alaska. Discussions with NEB focused on Canadian permitting and how the NEB process could be synchronized with that of the U.S. federal interagency team.
In August, FERC staff traveled to Alaska to meet with federal agencies and the Alaska Department of Natural Resources and to conduct pipeline route reconnaissance.
“Discussions focused on the agencies’ ability to review two projects simultaneously, the need for infrastructure improvement to support project construction and strategies for engaging Alaska Natives in the project review,” FERC said in its report.
Denali reported in July that it had completed an updated infrastructure needs assessment.
FERC said these are primarily long-lead time items. “Only a small percentage of the infrastructure projects identified in the studies have been completed to date,” the agency said.
TC Alaska initiates pre-filing TC Alaska initiated pre-filing in April and FERC said its staff has begun working closely with TC Alaska and the federal interagency team.
In June, TransCanada Corp. announced an agreement with affiliates of Exxon Mobil Corp. to work together on an Alaska gas pipeline, with TC Alaska remaining the project sponsor with FERC.
TC Alaska has conducted an infrastructure needs assessment. FERC said “improvements and repairs are necessary to address size and weight constraints on roads and bridges as well as the additional project-related traffic.”
FERC said the regulatory scheme for Canadian segments of both TC Alaska and Denali “has been clarified such that now the role of three agencies is being better coordinated.”
The Canadian agencies are the Major Projects Management Office — which will coordinate the Denali project; the Northern Pipeline Agency — responsible for managing TransCanada’s proposal in Alaska; and the Canadian Environmental Assessment Agency. The MPMO and NPA are both in Natural Resources Canada, akin to the U.S. Department of Energy, FERC said.
The National Energy Board will be involved with both projects for tariff and toll issues, as well as evaluating the merits of Denali’s proposal in Canada.
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