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RFP out for Cook Inlet gas storage
Kristen Nelson Petroleum News
The Alaska Natural Gas Development Authority has a request for proposals out for identification of potential locations for natural gas storage in the Cook Inlet region.
ANGDA is working on a proposal to bring North Slope natural gas to Cook Inlet and has discussed terminating its spur line (a line branching off a main North-Slope-to-market gas pipeline) at the Beluga reservoir and storing gas there.
ANGDA said it wants a discussion of storage facility capacity and deliverability that addresses “the regional need for load balancing, operational balancing and efficient management of spur line system supply.” The project is budgeted at between $75,000 and $100,000.
The RFP is dated Aug. 2 and proposals are due Aug. 22. ANGDA expects to complete evaluation by Aug. 23 and have the contract issued Sept. 4. A first draft of findings would be due Sept. 25, a first draft of the report Oct. 26 and the final draft Nov. 15.
In the background information section of the RFP ANGDA notes that natural gas storage has been used in North America for more than 90 years. Gas storage plays “an important role in maintaining the reliability of gas supply. Natural gas can be stored underground, typically in large depleted oil or gas reservoirs that are close to pipeline infrastructure.”
Seasonal needs, emergency backup Seasonal needs for natural gas are one important reason for gas storage: Demand is higher in the winter because natural gas is used for heating. Stored natural gas can play a vital role in meeting increased needs during the winter; during the summer, excess gas is stored for winter use. Gas storage allows the efficient operation of gas pipelines “by leveling flows and minimizing the impact of large swings in demand.”
Natural gas storage also ensures reliability in the event of “natural disasters, accidents or other occurrences that may affect the production or delivery of natural gas.”
Natural gas in storage facilities is used for base load requirements or peak load requirements, ANGDA said.
“Base load storage reservoirs are usually larger, but their delivery rate can be relatively low.” They provide “a prolonged, steady supply of natural gas.”
Peak load storage on the other hand provides “high deliverability for short periods of time.” Gas can be withdrawn quickly when needed. “Peak load facilities are intended to meet sudden, short-term demand increases.” Peak load facilities don’t hold as much natural gas as base-load facilities, but can deliver those smaller amounts of gas quickly and can also be replenished in a shorter amount of time.
“While base load facilities have long-term injection and withdrawal seasons, taking months or a year, peak load facilities can have turnover rates as short as a few days or weeks,” ANGDA said.
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