RCA issues LNG certificates

The Regulatory Commission of Alaska has officially allowed two utilities to operate separate transmission lines to move natural gas across a small area of the North Slope.

The regulators have issued certificates of public convenience and necessity for Polar LNG LLC and Spectrum Alaska LLC to operate short pipelines at Prudhoe Bay.

The first certificate allows Polar to operate an 8-inch gas pipeline running some 18,691 feet from Prudhoe Bay Flow Station 1 to the Polar LNG Pad, which was previously known as Child’s Pad. The second certificate allows Spectrum to operate an 8-inch gas pipeline running some 1,100 feet from Prudhoe Bay Flow Station 3 to a proposed pad.

Earlier this year, the Alaska Industrial Development and Export Authority started negotiations with MWH Americas Inc. to partner on an operation that would truck North Slope liquefied natural gas to the Interior region for space heating and power generation.

Both Spectrum Alaska and the Polar LNG parent company Pentex Alaska Natural Gas Co. LLC were in the running for the contract, but were passed over in favor of MWH.

The certificates are not entirely moot, though.

In an attempt to move quickly and account for contingencies, the AIDEA process allows the public corporation to negotiate with Spectrum or Pentex should the MWH arrangement fall through. The prioritization favors Pentex first, followed by Spectrum.

The Pentex subsidiary and Polar affiliate Fairbanks Natural Gas LLC recently told regulators it no longer plans to pursue a North Slope project, given the state involvement.

—Eric Lidji