newsminer.com

While TransCanada waits for a green light from state lawmakers, North Slope producers BP and ConocoPhillips are moving ahead with their own, competing natural gas pipeline.

The two companies announced today that they had chosen Bud Fackrell, a vice president for BP Alaska, to serve as president of the joint company pursuing the “Denali” gas line project.

Fackrell has worked for BP in Alaska since August, 2006, overseeing all of BP’s operations on the Slope except Prudhoe Bay, according to a news release.

The new company is called Denali -- The Alaska Gas Pipeline LLC. Each of the two producers has created a new subsidiary to hold their company’s interest in Denali. BP formed BP Alaska Gas Pipelines LLC and ConocoPhillips formed ConocoPhillips Denali Company.

Work is already underway. According to company representatives, about 100 people are already working on the project, half of them doing field work. The field work is centered in the Tok area and includes various studies, BP’s Steve Rinehart wrote in an e-mail. The work program will include hydrology studies, soil monitoring, aerial photography, and other things.

All told, the companies expect to spend $40 million in 2008, $100 million in the first 12 months (the project was announced in April), and about $600 million over the first 36 months, according to ConocoPhillips’ Natalie Lowman.