Denali makes 'significant progress'

JUNEAU, Alaska, July 14 (UPI) -- BP and ConocoPhillips made major progress with their Denali venture in Alaska to push a pipeline project to the Lower 48 despite the recession, officials say.

Denali and TransCanada are competing to develop a natural gas pipeline from the Alaskan North Slope. TransCanada has state support for the project but lacks federal approval. Denali, for its part, is spending its own money to develop the pipeline.

Bud Fackrell, president of Denali, writes in the Anchorage Daily News that his company has made "significant progress" on the Alaskan gas pipeline despite the economic recession.

"Alaskans need the Alaska gas pipeline project to be a success, and even in this economic environment we are making significant progress," he notes.

Fackrell adds that his company has received approval on a prefiling request from the Federal Energy Regulatory Commission while establishing "close working relationships" with federal agencies in Canada.

Denali in 2010 will invite potential customers for substantial financial commitments for its project, which Fackrell says is open to all regional suppliers.

Observers question the need for such an ambitious effort as natural gas locked in shale deposits in the Lower 48 becomes available. Fackrell says his company is taking the long-term approach, however.

"At Denali, we continue to take a long-term view of the project and believe there is a place for Alaska's gas in the North American market," he concludes.