Apr. 10--The BP-ConocoPhillips Denali gas pipeline group has awarded a contract for pipeline and compressor station preliminary engineering to Bechtel for its planned 2,000-mile large diameter natural gas pipeline from Alaska's North Slope to Alberta, the company said.

Results of the work will be used in developing cost estimates for the project to be used in an open season planned for late 2010. The open season is a period in which the pipeline company will solicit contracts to ship gas from potential customers including its owners, BP and ConocoPhillips, which are also North Slope gas producers. The pipeline is estimated to cost over $30 billion.

"Bechtel has extensive experience designing and constructing major pipelines, including some of the world's longest," said Kris Fuhr, Denali vice president and general manager for its mainline pipe project. "Their history and understanding of design and construction in Alaska and Canada will provide a solid foundation for the project."

The project covers preliminary engineering for the design phase of the project including cost estimating, scheduling and logistics planning as well as pipeline and compressor station engineering.

Denali also recently let a contract to a joint venture of WorleyParsons and Flour for preliminary engineering of a large gas treatment plant on the North Slope that would be part of the gas pipeline project.

TransCanada Corp. is working on a rival plan for an Alaska gas pipeline, also from the North Slope to Alberta, and recently let a contract for gas treatment plant preliminary engineering and design to URS Corp. TransCanada also plans an open season in 2010, the company says.

Tim Bradner can be reached at

tim.bradner@alaskajournal.com.

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