Assumptions to the Annual Energy Outlook 2003

Table 52.    Primary Assumptions for Natural Gas Pipelines from Alaska and MacKenzie
                    Delta into Alberta, Canada

 

Alaska to Alberta

MacKenzie Delta to Alberta

Initial flow into Alberta

4.5 Bcf/d

1.5 Bcf/d

Expansion potential

23 percent

23 percent

Initial capitalization

11.6 billion (2002 dollars)

3.6 billion (2002 dollars)

Discount rate

0.075

0.075

Depreciation period

15 years

15 years

Minimum wellhead price

$0.80 (2001 dollars per Mcf)

$1.00 (2001 dollars per Mcf)

Treatment and fuel costs

$0.46 (2001 dollars per Mcf)

$0.40 (2001 dollars per Mcf)

Risk Premium

$0.56 (2001 dollars per Mcf)

$0.39 (2001 dollars per Mcf)

Additional cost for expansion

$0.08 (2001 dollars per Mcf)

$0.08 (2001 dollars per Mcf)

Construction period

4 years

3 years

Planning period

3 years

2 years

Source:  Energy Information Administration, Office of Integrated Analysis and Forecasting.  Alaska pipeline data are partially based on information from British Petroleum/ExxonMobil/Phillips.