Denali estimates $35 billion to build proposed natural gas pipeline project in Alaska

Denali projects Alaska pipeline venture at $35B

JUNEAU, Alaska — The Denali project said Wednesday it will cost around $35 billion to build a treatment plant and major pipeline to move natural gas from Alaska’s North Slope to market.

The cost estimate is in line with a competing proposal, pushed by TransCanada Corp. and Exxon Mobil Corp., that also would take gas from the North Slope and move it to Canada for North American markets.

Both projects hope to be in service around 2020.

The TransCanada project has estimated its project’s cost at $20 billion to $41 billion, depending on the route, with the cross-Alaska-Canadian line estimated at $32 billion to $41 billion. It plans to begin courting gas producers and seeking shipping commitments as early as May 1 as part of what’s called an open season.

Denali is a joint effort of ConocoPhillips and BP.

Denali announced the new details Wednesday, a step in moving toward an open season of its own later this year, perhaps as early as July.

Denali proposes delivery points along its route to help meet natural gas demands in-state and in Canada.