Latchem proposing North Slope LNG

As the Interior debates the best way to bring natural gas to its homes and businesses, a familiar Alaska businessman is coming out of the woodwork to propose a liquefied natural gas project for the North Slope, according to recent regulatory filings.

Through a new subsidiary called Spectrum Alaska LLC, Ray Latchem wants to build an LNG plant and an associated pipeline in the Prudhoe Bay unit, near Pump Station No. 1.

The Spectrum LNG project would serve operations on the North Slope interested in converting their diesel-fired equipment to natural gas. While Spectrum specifically mentioned drilling rigs, work trucks, local mines and power plants, the company would “provide LNG for use in any market that chooses to convert,” according to filings.

In documents filed with the State Pipeline Coordinator’s Office, Latchem described the $30 million project as a 1,100-foot above ground pipeline carrying 50 million cubic feet of gas per day south from Flow Station No. 3 to a proposed liquefaction facility north of Spine Road. Calling the Prudhoe Bay natural gas supply “ample” but “of a very poor quality,” Latchem said the project would include a “significant” upstream treatment.

With timely regulatory approval, Spectrum anticipates being able to start construction on the project in July 2013 and bringing the system into operation as soon as August 2014.

The proposed location for the liquefaction terminal is one Latchem previously suggested to Fairbanks Natural Gas, as a preferred alternative for its proposed liquefaction plant.

A self-described member of the “lunatic fringe of the natural gas industry,” Latchem founded the North Slope utility Norgasco, the Interior utility Fairbanks Natural Gas and the Cook Inlet LNG outfit Northern Eclipse before pursuing Lower 48 energy projects.

Latchem remains the largest shareholder of Norgasco, he said.

In addition to Latchem, Spectrum Alaska includes the former Colville Inc. executive Jeff Helmericks and the former Qualitech Environmental Inc. founder Mark Ploen.

—Eric Lidji