Tariff change requests filed with RCA
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North Slope, Cook Inlet pipelines request increases, decreases, reflecting changing costs of operation, primarily volume driven
Kristen Nelson Petroleum News
The Regulatory Commission of Alaska said in early December it has received requests to revise intrastate pipeline tariffs from Cook Inlet Pipe Line, Endicott Pipeline, Kuparuk Transportation, Milne Point Pipeline and Northstar Pipeline. All changes are effective Jan. 1. There is also a request from Mid-Alaska Pipeline to update a monthly service payment.
The requested revisions are a mix of increases and decreases.
Cook Inlet Pipe Line is requesting an increase in the tariff for transportation from Granite Point or Trading Bay to the Swanson River Oil Pipeline, from $12.84 per barrel currently to $13.26 per barrel. Production data from the Alaska Oil and Gas Conservation Commission show production is down from both Granite Point and Trading Bay year over year.
There are two requests for tariff revisions from the Endicott Pipeline.
Hilcorp Alaska is the majority working interest owner and operator at Endicott, the Duck Island unit, where Endicott Pipeline is requesting an increase from $1.29 per barrel to $2.17 per barrel from the Endicott Main Production Island to Trans-Alaska Pipeline Pump Station No. 1. AOGCC data for October show an average of 5,892 bpd, down 14.7% from an October 2022 average of 6911 bpd.
The Endicott pipeline has also requested a tariff increase from the Badami Connection to pump station 1, from the current rate of 82 cents per barrel to $1.38 per barrel. The pipeline moves both Badami and Point Thomson volumes. Badami, owned and operated by Savant Alaska, a Glacier Oil and Gas company, had a year-over-year increase, more than offset by a year-over-year decline at Point Thomson. AOGCC data show Badami averaged 939 bpd in October, up 81.7% from an October 2022 average of 517, while Hilcorp-operated Point Thomson (ExxonMobil is the majority working interest owner) averaged 3,038 bpd in October, down 62% from an October 2022 average of 7,987 bpd.
Kuparuk Kuparuk Transportation is requesting a decrease from 31.2 cents per barrel to 22.1 cents per barrel from the Kuparuk River unit to Pump Station 1 on the Trans-Alaska Pipeline, and a decrease from 23.3 cents per barrel to 16.5 cents per barrel from the Milne Point Pipeline connection to pump station 1.
Kuparuk is operated by ConocoPhillips Alaska, and AOGCC data show production there is down some 2% year over year. However, production from Milne Point is up enough, 8% year over year, that the combination volume from the two has increased.
The Mid-Alaska Pipeline request is for an increase in the monthly service payment for pipeline services to Petro Star, an increase from $543,591 to $602,892 per month. Mid-Alaska is a 2.3-mile buried line between the Alaska Pipeline Service Co. North Pole metering station and the Petro Star Refinery.
The Milne Point request is for a decrease from 42 cents per barrel to 28 cents per barrel from the Milne Point Central Facilities to the Kuparuk Transportation Co., reflecting the increase in Milne Point production.
Northstar Pipeline requested an increase from $1.99 per barrel to $2.48 per barrel. Hilcorp Alaska is the Northstar field owner and operator. The line moves volumes from the Northstar Production Facility on Seal Island to pump station 1. AOGCC data show Northstar averaged 5,670 bpd in October, down 18.6% from an October 2022 average of 6,965 bpd.
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