Denali President Bud Fackrell has said that the results of the open season will provide an understanding of shipping requirements, important in considering the next steps to be taken on the project.
Mr Fackrell expressed concerns that shippers may hesitate in making the financial commitments needed to support the project due to an increased gas supply in the Lower 48 market, concerns over the legal status of the leases at the Point Thompson oil field unit and the lack of long term fiscal regime for Alaska’s North Slope gas production.
“Our potential shippers have publicly indicated that resolution of these issues will be important in their decision to make the multi-billion commitments necessary to move the project forward.
“Denali’s open season will provide potential shippers the best opportunity to evaluate the economics of North Slope natural gas sales to the Lower 48 market,” said Mr Fackrell.
The proposed Denali Pipeline project consists of a gas treatment plant on the North Slope, an approximately 3,219 km long pipeline to Alberta, Canada, and if required, a 2,414 km long pipeline from Alberta to Chicago at a current estimated cost of $US30 billion.