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Enstar estimates pipeline costs for RCA
Kristen Nelson Petroleum News
Pipeline costs to hook up the North Fork gas field on Alaska’s Kenai Peninsula to the Enstar Natural Gas Co. system are estimated at some $27.8 million, including $4.5 million for the portion to be funded by operator Armstrong Cook Inlet and the other North Fork unit owners from the field to Anchor Point and $23.3 million for the Anchor Point to Kenai Kachemak Pipeline portion to be funded by Enstar.
Filings with the Regulatory Commission of Alaska in mid-October said the North Fork to Anchor Point 6-inch flex tubing line would have a per-foot cost of $22. Total cost for the 9.33 miles would be $4,521,000. This segment will be built by Norstar and paid for by Armstrong. The filings were by Alaska Pipeline Co., a wholly owned subsidiary of Semco Energy Inc.; Enstar, the Southcentral gas distribution company, is also a wholly owned subsidiary of Semco Energy. Norstar Pipeline Co. is a wholly owned subsidiary of Alaska Pipeline Co.
The pipeline segment from Anchor Point to Ninilchik, to be built by Alaska Pipeline Co., will be an 8-inch steel line and will have a per-foot cost of $35.84. The 21.08-mile line will cost $16,533,000. Two measurement stations, one at North Fork and one at Anchor Point, will cost $252,000 each; a measurement station at Ninilchik where the gas enters the Kenai Kachemak Pipeline will cost $643,000. A 1.62-mile main to Nikolaevsk is estimated at $323,000.
Service area expansion In September filings with RCA, Alaska Pipeline said the new line would help bring gas to Enstar’s existing customers and would also enable the company to expand service to the Anchor Point area.
Anchor Point Energy — a company formed from the five North Fork unit working interest owners — has made an initial commitment of 1.2 billion cubic feet of gas annually from the unit, an initial commitment of up to 10 bcf.
The authorized service area would be expanded from the Ninilchik area of the Happy Valley extension of the Kenai Kachemak Pipeline to the vicinity of Anchor Point.
In addition to providing additional gas for Enstar’s existing customers, Alaska Pipeline said the new pipeline and related infrastructure will also enable Enstar to serve the approximately 1,800 residents of the Anchor Point area.
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