Posted on 05/17/2011 12:05:33 PM PDT by tcrlaf
Denali - The Alaska Gas Pipeline announced today that its open season efforts have not resulted in the customer commitments necessary to continue work on its Alaska North Slope gas pipeline project, which has an overall estimated capital cost of $35 billion (2009 dollars). Denali will withdraw its Federal Energy Regulatory Commission pre-file application and, over the next few months, close out its operations.
"Denali is ending its efforts because of a lack of customer support," said Bud Fackrell, Denali President. "Denali is a market-driven company. As such, we cannot spend the billions of dollars necessary to advance the project unless we have binding agreements with shippers. Although we have been in discussions with potential shippers for nearly a year and half, we have been unable to secure the financial commitments necessary to advance the project."
Work to date has been substantial. Denali has conducted extensive stakeholder consultations, set up multiple data rooms with detailed information, submitted comprehensive public filings, and provided access to Denali's experts to help potential customers evaluate the project. Denali has spent over $165 million and invested more than 760,000 man-hours in its work effort.
Since Denali began its efforts in 2008, the North American gas market has changed significantly, primarily as a result of the development of shale gas resources. This has created a very difficult environment in which to secure financial commitments from potential customers.
Parnell dropping the ball again.
Parnell dropping the ball again.
He has a way with doing that. I trust Palin but this guy is just not near as good as Palin was as governor.
With the vast growth in lower 48 shale gas production creating sustained lower natural gas prices, the pipeline to the south does not make economic sense.
Media: Palin pipeline a complete failure. Hundreds of millions lost! Possible scandal!
Yep, that will be the MSM narrative as this project closes up shop. Count on it.
One thing is for sure. Nobody in the Drive-by media will question that this is Palin’s baby.
This is not the TransCanada/Exxon/Palin pipeline. This was the competing project.
Yeah, I realized that after I pinged y’all.
And the media will still spin this as a Palin failure. When have facts ever mattered to them?
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