The state is proposing to grant Spectrum Alaska LLC a right-of-way to build and operate a pipeline and an associated natural gas liquefaction project on the North Slope.
If granted, the right-of-way would allow Spectrum to build a 100,000 gallon-per-day liquefaction plant and a 1,100-foot pipeline connecting the plant to the Prudhoe Bay Unit Central Gas Facility. The $30 million project would also include storage and trucking.
Spectrum is looking to market LNG to diesel users on the North Slope, as well as anywhere else in the state it can economically serve. The company has been actively promoting itself in public conversations about bringing natural gas to the Interior.
The current proposal is for a one-train facility, which could be expanded.
The construction right-of-way would cover 18 acres of state-owned land, which would shrink to some 16 acres once construction finishes and the system becomes operational.
Spectrum is proposing an 8-inch aboveground pipeline resting on vertical support members except for where the pipeline would need to be buried under a gravel road.
With the draft ruling from the Department of Natural Resources, the project now goes out for public comment until Sept. 3, after which time the state can make its final ruling.
The Regulatory Commission of Alaska previously gave Spectrum a certificate of convenience and public necessity to build and operation the small natural gas pipeline.