The proposed Denali Alaska North Slope natural gas pipeline took a small step backwards this month after it informed FERC that it is delaying its application for a certificate of public convenience and necessity (CPCN) with the regulatory body for more than a year.

Denali, a new company in Alaska and a joint venture in Canada comprised of BP and ConocoPhillips, is proposing a 3,500 mile pipeline to transport 4 Bcf/d of gas to consumers in Canada and the United States. The project would consist of 2,000 miles of pipe from the North Slope to Alberta and “possibly” another 1,500 miles down to Lower 48 markets. Originally scheduled for filing with the Federal Energy Regulatory Commission (FERC) in August 2011, the company has now pushed back its plans until the fall of 2012.

“We’re delaying the CPCN filing until October of 2012,” said Dave MacDowell, a Denali spokesman. “When we decided to focus exclusively on the work required for our open season in 2010, we deferred some of the field work that we could have done in 2009 because it wasn’t needed to support that open season. We now have what we need to support the open season in 2010, but we need two full seasons of field work to support the CPCN filing, so the new filing date allows for a full 2010 and 2011 field survey effort.”

According to a proposed timeline on Denali’s website, the company hopes to have permit approvals from FERC and the National Energy Board by 2014, followed by four years of construction with first gas coming online in 2018.

In a July update, the company said it was still working on the project’s cost estimate, but noted that “Denali does not require state funding to move forward.” The joint venture added, “The economy and competition has not changed our focus.”

The Denali pipeline is going head to head with another North Slope pipeline project proposed by TransCanada and ExxonMobil. The two companies said earlier this summer that they will launch an open season early next year for capacity on the proposed $26 billion Alaska natural gas pipeline project, which is targeted to make deliveries into Canada and the Lower 48 by 2018 (see Daily GPI, Aug. 3).

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