HOME PAGE SUBSCRIPTIONS, Print Editions, Newsletter PRODUCTS READ THE PETROLEUM NEWS ARCHIVE! ADVERTISING INFORMATION EVENTS PETROLEUM NEWS BAKKEN MINING NEWS

Providing coverage of Alaska and northern Canada's oil and gas industry
June 2011

Vol. 16, No. 24 Week of June 12, 2011

Ivan River plan out for public comment

Union Oil applies for new gas storage lease; would store gas in Beluga gas sand; storage would be for company use, not third party

Kristen Nelson

Petroleum News

Up to 3 billion cubic feet of natural gas storage would be added to the 32.8 bcf of storage already in place in Alaska’s Cook Inlet under a proposal by Union Oil Company of California, a Chevron subsidiary, for storage at the company’s Ivan River unit northeast of Beluga on the west side of Cook Inlet.

Union Oil told the state in March that it intends to use the lease storage space “exclusively for storage of Union Oil’s gas” and said the company does not intend to apply to the Regulatory Commission of Alaska to become a utility, which would allow it to offer commercial storage to third parties.

Union Oil already has Cook Inlet storage at Swanson River on the east side and Pretty Creek on the west side. Cook Inlet’s largest gas storage facility, at the Kenai field on the east side, is owned by Marathon. All of these facilities are used for storage of company-owned gas.

Cook Inlet Natural Gas Storage Alaska has a proposal under way for a storage facility in the Kenai area which would offer third-party storage. CINGSA is a joint venture of Semco Energy, the parent company of Southcentral Alaska gas distribution utility Enstar Natural Gas, and MidAmerican Energy Holdings Co. Initial customers for the CINGSA facility include Enstar, Chugach Electric Association, Municipal Light & Power and Alaska Electric and Energy Cooperative, the wholesale power supplier to Homer Electric Association.

Comments due July 5

The Alaska Department of Natural Resources’ Division of Oil and Gas said comments on Ivan River gas storage proposal are due July 5.

Union Oil originally filed for gas storage at Ivan River in early 2010, but withdrew its application in March 2010.

The company reinstated the application in March 2011.

Union Oil told the state that it proposes to begin installation of a gas storage facility at the Ivan River pad this summer. Ivan River is some nine miles northeast of Beluga on the west side of Cook Inlet.

“The purpose of this project is to facilitate delivery of sufficient quantities of gas at peak demand times (during winter months) to accommodate consumer needs,” the company said.

Union Oil said existing west side nonproducing gas wells were evaluated for gas storage potential and the Ivan River unit 44-36 well was found to be the only available well with required reservoir properties — high permeability and porosity and manageable size.

Up to 3 billion cubic feet of natural gas would be injected into storage in the well over a three-year period, 2011 through 2013, during summer months, filling the storage reservoir to capacity to aid in meeting peak demand during the winters of 2012-14. Gas injection will continue in following summers to replace gas delivered the previous winter, the company said.

Compression equipment

The Ivan River unit 44-36 well would be converted to gas storage, compression equipment would be installed and production facilities at the Ivan River pad would be upgraded to support gas storage.

Compressor installation and facility upgrades involve installation of compression modules and associated piping; communication upgrades; reactivation of the A-train glycol dehydration system and upgrades to existing facilities at the pad to facilitate gas injection into and delivery from the IRU 44-36 well.

Compression equipment will consist of one large compressor or two smaller compressors. Union Oil said that because of the aggressive schedule for the project and the long lead time for permanent compression equipment, a smaller temporary compressor will be installed to support gas storage “until permanent compression equipment can be designed, procured, mobilized, installed, inspected and tested.”

Permanent compression equipment is expected to be delivered in late fall of 2012 or spring 2013 and would be operational by summer or fall 2013.

Gas well conversion and well workover activities at a nonproducing gas well on the pad, IRU 41-01, are planned for mid-June through mid-August 2011, according to Union Oil’s plan, submitted in May. The company said some pad preparation and equipment mobilization may take place in early to mid-June.

Equipment and supplies will be barged from Nikiski to Beluga.






Petroleum News - Phone: 1-907 522-9469 - Fax: 1-907 522-9583
[email protected] --- http://www.petroleumnews.com ---
S U B S C R I B E

Copyright Petroleum Newspapers of Alaska, LLC (Petroleum News)(PNA)©2013 All rights reserved. The content of this article and web site may not be copied, replaced, distributed, published, displayed or transferred in any form or by any means except with the prior written permission of Petroleum Newspapers of Alaska, LLC (Petroleum News)(PNA). Copyright infringement is a violation of federal law subject to criminal and civil penalties.