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Marathon joins Kenai Kachemak Pipeline Project consortium Applications could be submitted in October, with construction beginning as early as the fall of 2002 Kristen Nelson PNA Editor-in-Chief
The Kenai Kachemak Pipeline Project said Aug. 30 that Marathon Oil Co. has joined the consortium to study and to potentially construct a natural gas pipeline on the southern Kenai Peninsula.
The agreement, signed Aug. 21, makes Marathon an equal partner in KKPP with Unocal Alaska, Alaska Electric Generation and Transmission, of which Homer Electric Association is the primary owner, and Alaska Pipeline Co., a subsidiary of Enstar.
"We are pleased that Marathon is participating in this project," said Norm Story, general manager of Homer Electric and spokesman for the consortium.
"They have substantial gas reserve potential in the southern Kenai, and their involvement adds new momentum to the project."
Marathon will join Unocal as a major shipper on the pipeline.
"Marathon also brings a great resource of technical ability in finding and developing gas resources to the group," Story said.
Marathon has been drilling "For the past several years, Marathon has been very active in drilling to further develop our existing fields and to look for new reserves on the Kenai Peninsula," said John Barnes, Alaska business unit production manager for Marathon.
"Like the other members of the KKPP, we have been evaluating options to bring these new reserves to market for some time. Marathon is pleased to be able to cooperate with those who have like interests and to bring our knowledge and resources to the project."
The Kenai-Kachemak Pipeline Group formed in December to study the feasibility of constructing a 75 mile natural gas pipeline from potential gas fields near Ninilchik. Ultimately the pipeline is intended to reach consumers as far south as Homer, Alaska.
Sandra Ghormley, spokeswoman for Homer Electric, told PNA in September that the partners are very encouraged with the way things are progressing.
"We finished the conceptual phase, which is basically the phase where the partners visualize and start putting the project on paper."
Completed in July, the conceptual phase evaluated possible routes, operation and permitting issues and conducted preliminary cost feasibility research. The next step, Ghromley said, is preliminary design … contracting with an engineering firm to design the proposed route and firming up cost numbers — taking cost figures from a range to a firm number."
Bids will be taken for a design basis for the pipeline, which will be used to submit an application to construct the pipeline to the Joint Pipeline Office and the Division of Governmental Coordination. Ghormley said that if the next phase goes well, an application could be submitted by October.
"We have already had several favorable discussions about this project with the permitting agency staff," Story said.
"We are hopeful that the permitting process will proceed smoothly so that construction can begin once sufficient gas resources are confirmed."
Construction on portions of the pipeline could begin as early as fall 2002. It is estimated that the pipeline will cost approximately $45 million to construct.
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