According to an internal maintenance report of BP (NYSE:BP), a minimum of 148 pipelines on the North Slope in Alaska are in danger of failing, generating questions on BP's new commitment to safety.
The company has ranked the 148 pipelines as an "F" at this time.
Most of the pipeline problems come from what is described as severe corrosion, in some cases worn to levels of only millimeters from bursting, says the report.
Responding to the alleged pipeline problem, BP's Alaska spokesman, Steve Rinehart, said there was "an aggressive and comprehensive pipeline inspection and maintenance program" in place to deal with the testing for safety concerning corrosion.
BP's Alaska spokesman, Steve Rinehart, said the company had , which included spending millions of dollars and regularly testing for safety, reliability and corrosion.
Also at issue is the reliability of fire and gas warning systems, which Rinehart also said are tested on a regular basis.
"We will not operate equipment or facilities that we believe are unsafe," Rinehart concluded.
Showing posts with label North Slope. Show all posts
Showing posts with label North Slope. Show all posts
Wednesday, November 3, 2010
Tuesday, October 5, 2010
BP (NYSE:BP), Conoco (NYSE:COP) Denali Joint Venture Receives Bids
Bids to transport natural gas down the proposed natural gas pipeline from Alaska to major American markets from the BP (NYSE:BP), Conoco (NYSE:COP) joint venture called Denali, have been coming in said the energy companies.
A 90-day period where natural gas producers could bid for space on the pipeline to be built just ended. The pipeline hasn't been built yet, although the overall process has been underway for some time.
Bud Fackrell, Denali's president, said in a statement, "After two years of work, more than 700,000 man-hours and more than $150 million of private investment, I can report that Denali has received bids for significant capacity from potential shippers."
"As expected, the bids include conditions, some of which are outside of Denali's control. We will carefully evaluate these bids and their conditions and continue confidential negotiations with potential shippers in an effort to reach binding agreements," added Fackrell.
Market conditions have changed since the joint venture was put together, as enormous reserves of shale natural gas have been found in the lower 48, and that has companies concerned over how competitive natural gas from the Alaska North Slope will be, which is affecting the negotiations and bids.
Plans by Denali are to develop a pipeline about 1,700 miles long which would go through Alaska to Alberta, Canada. It would also include a huge gas treatment facility at Prudhoe Bay.
The pipeline would be able to transport about 4.5 billion cubic feet a day.
Cost to build the pipeline by Denali are estimated at $35 billion.
Approximately 35 trillion cubic feet of proven natural gas reserves are located on the Alaskan North Slope.
A 90-day period where natural gas producers could bid for space on the pipeline to be built just ended. The pipeline hasn't been built yet, although the overall process has been underway for some time.
Bud Fackrell, Denali's president, said in a statement, "After two years of work, more than 700,000 man-hours and more than $150 million of private investment, I can report that Denali has received bids for significant capacity from potential shippers."
"As expected, the bids include conditions, some of which are outside of Denali's control. We will carefully evaluate these bids and their conditions and continue confidential negotiations with potential shippers in an effort to reach binding agreements," added Fackrell.
Market conditions have changed since the joint venture was put together, as enormous reserves of shale natural gas have been found in the lower 48, and that has companies concerned over how competitive natural gas from the Alaska North Slope will be, which is affecting the negotiations and bids.
Plans by Denali are to develop a pipeline about 1,700 miles long which would go through Alaska to Alberta, Canada. It would also include a huge gas treatment facility at Prudhoe Bay.
The pipeline would be able to transport about 4.5 billion cubic feet a day.
Cost to build the pipeline by Denali are estimated at $35 billion.
Approximately 35 trillion cubic feet of proven natural gas reserves are located on the Alaskan North Slope.
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