May 2009 Vol. 236 No. 5

Projects

Bechtel Wins Denali Engineering Contract

In recent weeks, the Alaska Gas Pipeline LLC (Denali) has awarded an engineering contract for the gas mainline project to Bechtel.

The mainline project includes the pipeline and associated compressor stations from Alaska’s North Slope to Alberta, Canada. Denali – The Alaska Gas Pipeline was launched in 2008 by BP and ConocoPhillips, two major North Slope producers.

The project will consist of a gas treatment plant on the North Slope, a pipeline 2,000 miles long to Alberta, Canada, and if required, a 1,500-mile pipeline from Alberta to Chicago. The current estimated cost is $30 billion. The pipeline will be in the range of 48 inches in diameter.
“I’m very pleased that Denali has been able to partner with Bechtel for this work,” said Kris Fuhr, vice president and mainline project general manager. “Bechtel has extensive experience designing and constructing major pipelines, including some of the world’s longest. Their history and understanding of design and construction in Alaska and Canada will provide a solid foundation for the project. We are pleased to have them on the team.”

The contract covers the services required during the preliminary engineering design phase of the mainline project. Major contract elements include pipeline engineering, compressor station engineering, design basis development, cost estimating, scheduling, and procurement planning as well as infrastructure and logistics assessments. The work to be performed by Bechtel will be used in the development of Denali’s commercial terms for its 2010 open season. If present schedules hold, first gas could be flowing by 2018.

The project’s headquarters are located in Anchorage, Alaska. The Canadian portion of the project (Denali Canada) has an office located in Calgary, Alberta.