The state has approved ExxonMobil's revised expansion plan for Point Thomson after initially denying it in August. The revised plan discusses the potential for facilities expansion to allow an increase in production to more than 50,000 barrels per day of condensate (the facilities' capacity is now some 10,000 bpd) and to move 920 million standard cubic feet of gas a day to Prudhoe Bay for injection.
Gov. Bill Walker said in a press release this afternoon that the state's "approval of the Point Thomson to Prudhoe Bay pipeline plan adds to the momentum of the Alaska LNG Project and demonstrates the commitment of the Point Thomson working interest owners to move gas from Point Thomson into Alaska Gasline Development Corp.'s 800-mile pipeline." The governor was referring to AGDC's proposed AKLNG project, which would include gas processing on the North Slope, an 800-mile pipeline and a liquefaction facility at Nikiski.
The Division of Oil and Gas previously approved ExxonMobil's plan for continued liquid condensate production from Point Thomson, but asked for additional information on the expansion-related portion of the plan of development.
In a Dec. 22 approval letter, division Director Chantal Walsh said the division's initial denial was based on the conditional nature of the expansion planning work, but said a revised plan changed the company's position on the conditional language.
ExxonMobil told the division that while it needed to obtain authorization from working interest owners it has now obtained such authorization to progress project work through the end of the year, although approvals to progress expansion work to a decision point by the end of 2019 have not been received.
The division said ExxonMobil also provided some additional detail lacking in the original planning POD.
- KRISTEN NELSON
See story in Dec. 31 issue available Friday, Dec. 29 at www.PetroleumNews.com