2. Denali – The Alaska Gas Pipeline
BP and ConocoPhillips have joined to start “Denali – The Alaska Gas Pipeline”
Project headquarters in Anchorage
New company formed to manage the project in Alaska; joint venture being formed in Canada
Plan to start open season before year-end 2010
Plan to spend $600 million over 36 months
Executive Team in place
Project team mobilized
Field work program underway
Community visits and agency discussions underway in Canada and Alaska

3. How much is 4 billion cubic feet per day?
Denali Project 4 billion ft3/day to North American Consumers
Project Components
Gas Treatment Plant on the North Slope
Large diameter, high pressure pipeline to Alberta
Extension of pipeline from Alberta to Lower 48 will be undertaken if it improves project success or reduces transportation costs 1 2 3
Legend
Denali Pipeline
Denali B2C Pipeline
Alliance Pipeline
West Nova Pipeline
East Nova Pipeline
Western Pipeline
Northwest Pipeline
Northern Borders Pipeline
Trans Canada Main Line
Great Lakes Pipeline
Union Gas
Trans Quebec & Maritimes PL
Iroquois Pipeline
Portland Gas Pipeline 4 12 9 5 14 9 6 13 7 2 10 8 3 11 7 6
How much is 4 billion cubic feet per day?
6-8% of US daily consumption

4. New Gas Treatment Plant Central Compression Plant
What will it do?
Remove CO2 and other impurities
CO2 to be reinjected, reducing greenhouse gases
Dehydrate gas
Remove water
Compress gas
For pipeline pressure
Chill gas
Maintain permafrost
Where will it be?
Located near the Prudhoe Bay facilities
New Gas Treatment Plant
Central Compression Plant
Central Gas Facility

5. Pipeline What is it? How big is it? Buried large diameter pipeline
Operates at ~ 2,500 psi
Compressor stations every 100 to 200 miles at >40,000 hp each
How big is it?
About 2,000 miles to Alberta
~2-3 million tons of steel
Possibly another 1,500 miles to US markets
~2 million tons of steel
Cut-Away
View
Alaska Gas Pipeline
TAPS

6. Alaskan Programs Make available $30 million to fund
Job Training Programs
In-State Gas Feasibility
Infrastructure Upgrade Studies

7. Job Training Our goal is having a trained workforce for this project
Owner companies support many technical training programs
Committed to train local residents for this project
Denali’s owner companies have demonstrated a long history of local hire, buy, and build. Denali will share that commitment.

8. Natural Gas for Local Use
Denali – The Alaska Gas Pipeline proposed route
Potential Alaska Offtake Points
Will support in-state gas distribution efforts, including gas to Southcentral Alaska.
Will provide for at least 5 Alaskan offtake points, including Fairbanks
Other offtake points including Canada as appropriate

9. Infrastructure Upgrade Studies
Roads
e.g. Richardson, Dalton, Haines, Elliot, & Alaska/Canadian Highways
Bridges
e.g. Steese, Glenn, Parks, Haines Highways
Ports
e.g. Port of Haines

10. 2008 Work Summer Field Work Engineering progressed
Tok field office established
Surveyed over 200 miles of wetlands
Investigated 70 archeological sites
Shot over 1700 miles of ortho-photography
Shot 730 miles of “immersive” video
Investigated 538 potential stream/river crossings
Performed route reconnaissance
As many as 80 people in the field
Engineering progressed
Route optimizations
Technical studies
Environmental assessments
Cost estimates & schedules
Plan project execution
Employing 60+ people

11. Who’s Working with Denali right now?
$40 million to be spent on Summer Field Work.

12. 2009 Field Work Program
Extend study area to encompass entire Alaskan route
Focus on Yukon and British Columbia
Consultation with communities, native Alaska stakeholders and Canadian Aboriginal groups
Secure permits and land access
Consultation with Communities
Input on preliminary route
Input on planned program
Identification of potential resources
Review existing data, perform data gap analysis and finalize 2009 program

13. Denali Terms of Service
Denali will be an open access pipeline
Rates will be distance-sensitive for local use
Project design will provide for efficient expandability
Denali plans to solicit customers for interest in expansion every two years
Flexibility to use existing or new infrastructure out of Alberta

14. Stakeholder engagement
Success Case Project Timeline
File All Applications
2018
All Project Approvals (FERC / NEB, Permitting, ROW, & Full Funding)
First Gas
Full Capacity
5 Years
5 Years
2008
Phase 1
(Planning)
Phase 2
(Prepare Applications)
Phase 3
(Permit Approvals)
Phase 4
(Execution)
Ramp up
Outreach
Stakeholder engagement
Planning
Planning
Collect Field Data
Open Season
Permitting
Application Prep
Review/Approval
Engineering & Regulatory
Engineering
Detailed Design
Procurement
Pre-Procure
Equip & Material Supply
Module Fabrication
Construction
Pre-Construct.
Construction & Commissioning
Infrastructure Upgrades

15. Open Season By year-end 2010 1-2 months …
Formal process regulated by the FERC in the US (NEB in Canada)
Pipeline company seeks customers to make long-term firm transportation commitments to the project
These contracts obligate customer to pay costs whether or not they ship or even own gas
These contracts give banks the necessary confidence to lend money to the pipeline company
By year-end 2010
1-2 months
Notice to Conduct
Open Season
60 Days
30 Days
90 Days …
10 days
10 days
Discussions with potential shippers, negotiate terms of carriage & prepare Open Season Plan
File copies of precedent agreements with FERC; begin to secure financing
Conduct
Open
Season
Sign precedent agreements
Public comments
Apply for FERC approval of Open Season Plan
Post results of Open Season
FERC Approves Open Season Plan

16. Denali Progress Continues
Opened Tok field office and two temp offices in Anchorage
FERC pre-filing request approved
Executive Team in place
2008 summer field program nearing completion ($40 million)
Borehole drilling to begin this winter
2009 field work program in both Canada and Alaska
Expect to let key engineering contracts in the next six months
In-state gas study will be initiated in 2009

17. BP & ConocoPhillips: Technical and Financial Strength
Combined Pipeline experience
More than 50,000 miles of oil & gas pipelines
Solid technical capabilities
Proven leaders in pipeline technology development
Proven track record in the arctic
Proven ability to deliver challenging world-class projects
Strong balance sheets
More than $300 billion of combined market capitalization
Provide financial strength to support construction