Open Season
On July 30, 2010, the Alaska Pipeline Project completed its initial open season and received multiple bids from potential shippers. Since the close of the open season, the project has engaged in negotiations to resolve conditions set out by the potential shippers, with the goal of turning the bids into signed precedent agreements.
Learn more about the first open season in Alaska’s North Slope history.
Goal: Firm Shipping Commitments
During the open season, potential gas shippers had to decide whether to make bids to reserve capacity on the proposed pipeline. These commitments of 20 years or more and for billions of dollars are needed to secure the financing for a project that could cost as much as $32-$41 billion to build.
As is common on gas pipeline projects, the bids were submitted with conditions that must be resolved in order to secure firm shipping commitments. To that end, the project has engaged in confidential negotiations with potential shippers to resolve bid conditions that are under our control with the end goal of turning those bids into shipping commitments called precedent agreements. Precedent agreements are an essential step in the pipeline development process as they:
- Define the project scope and services, including such issues as pipeline volumes, route selection, and other key factors.
- Provide the foundation essential to secure financing for the project from commercial lenders.
It is important to note that some bid conditions are beyond the project’s control and will require resolution between shippers and governments. Reaching an agreement between the State of Alaska and shippers on such matters as natural gas fiscal structure and resource access at the Point Thomson field are critical to success of the project. Success will require all parties - including producers/shippers, the State, and the Alaska Pipeline Project - to actively engage to realize a mutually beneficial outcome.
Reporting of Open Season Results
The Alaska Pipeline Project continues to follow the open season process required by FERC Order 2005. This Order applies to the federal regulatory review of an Alaska natural gas pipeline project and establishes a number of unique open season rules, including public access to open season documents. The project is fully committed to meet the public information requirements of FERC Order 2005. Read more on FERC Order 2005.
The Alaska Pipeline Project's open season application documents and comments for the Alaska segment of the project are on file with the FERC and open to public inspection, as well as available on this website. The filing is available for review at the Commission in the Public Reference Room or may be viewed on the Commission's website using the FERC eLibrary link. In the general search option, enter the docket number (PF09-11) in the docket number field to access the document. For assistance, please contact FERC Online Support or toll free at (866) 208-3676.
Read the Alaska Pipeline Project’s open season notice and plan for the Alaska segment of the project. Additional open season documents can be found in our Document Library.
Canadian Open Season
A separate but coordinated open season for the Canadian portion of the project was conducted concurrently in Canada.
Read the Alaska Pipeline Project’s open season notice for the Canadian segment of the project.
In-State Gas Study
The Alaska Pipeline project has set a high priority on providing access opportunities for in-state natural gas to heat and power local homes, business and industry. Both of the project route options provide for local natural gas off-takes in Alaska, and the Alberta option also provides off-takes in Canada.
As required by the U.S. Alaska Natural Gas Pipeline Act of 2004 (ANGPA), an in-state gas study was completed in 2010, assessing Alaska's in-state gas needs and identifying potential locations for local distribution points off the main pipeline, called off-takes. At least five of these local natural gas off-takes will be provided in Alaska under both the Alberta and Valdez options, with the locations to be based on interests expressed through bidding during the open season. Local energy providers will have the opportunity to access natural gas from these local take-off points to meet community needs.
Read the Alaska Pipeline Project’s In-State Gas Demand Study.