August 27, 2010 --- Vol. 16, No. 80August 2010

Firm launches open season for gas line between Prudhoe, Eielson

Page 6 of the Aug. 29 edition of Petroleum News, available online today at noon, carries a paid notice for a non-binding open season to see if there is interest in “firm, bundled supplies of natural gas and/or NGL commodities” in Interior Alaska.

The advertisement said Energia Cura is conducting the open season, which will run from Aug. 26 to Oct. 1, on behalf of Fairbanks Pipeline Company, or FPC.

Yesterday, Aug.26, after the Aug. 29 edition of Petroleum News had closed, Energia, a Fairbanks-based energy services and consulting company, issued a more detailed statement about its client’s intentions.

FPC is holding the non-binding open season to determine if there is enough interest in firm supplies of natural gas to justify a “small-bore, fit for purpose” private natural gas pipeline that would supply communities between Prudhoe Bay and Eielson Air Force Base with “affordable” gas by 2014.

Per Energia’s press release, FPC officials said its proposed private line is “the most expedient option yet identified for universally lowering the Interior’s cost of electrical power, LNG (liquefied natural gas) sourced natural gas, and heating oil. They point out that this project’s supply of affordable fuel to companies such as Golden Valley Electric Association, Fairbanks Natural Gas, and local refineries will save Interior enterprises and consumers close to $1.72 billion over the next 20 years. FPC officials stress that participation by all Interior communities is necessary to make this project a reality.”

According to the release, FPC’s project “does not aim to compete with any of the larger pipelines now under consideration. The proposed small-bore gas pipeline will actually complement development of the larger pipeline(s) by providing ready markets through its working primary and secondary transmission systems to these larger systems.”

Once a larger pipeline is online, “FPC’s systems will be ready for continued operation in either gas or liquid service for potential downstream opportunities,” Energia said.

For more information on this project contact [email protected]

Note: See the full story in the Sept. 5 issue of Petroleum News, which will be available to subscribers online at next Friday, Sept. 3.

Petroleum News - Phone: 1-907 522-9469 - Fax: 1-907 522-9583
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