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Rates to increase on seven NS lines In annual rate adjustments, four BP-affiliated pipelines and three ConocoPhillips-affiliated pipelines set to increase Eric Lidji For Petroleum News
With the end of the year, the owners of pipelines that carry petroleum products from North Slope fields to the trans-Alaska oil pipeline are adjusting their shipping rates.
Through affiliates, BP proposes to increase the rates on four North Slope pipelines — Milne Point, Endicott, Badami and Northstar — while ConocoPhillips proposes to increase the rate on three North Slope pipelines — Kuparuk, Oliktok and Alpine.
The increases would all go into effect at the start of the year.
BP-related pipelines Under the proposed rates, Milne Point Pipeline LLC would charge $1.91 to ship a barrel of oil from the Milne Point Central Facilities to the Kuparuk Pipeline on the 10.7-mile Milne Point Oil Pipeline, up 43.6 percent from the current rate of $1.33 per barrel.
In 2012, Milne Point shipped oil for BP Oil Supply Alaska, ConocoPhillips Alaska, Flint Hills Resources Alaska and Kerr McGee Corporation Alaska. In 2011, the pipeline carried 8,061,856 gross barrels, according to the State Pipeline Coordinator’s Office.
The Endicott Pipeline Co. would charge $3.26 to ship a barrel of oil from the Endicott Main Production Island to the Pump Station No. 1 on the 26.1-mile Endicott Pipeline, up 23 percent from $2.65. It would also charge $2.07 per barrel to ship from the Badami connection of the pipeline to Pump Station No. 1, up 22.4 percent from $1.69 per barrel.
In 2012, Endicott shipped oil for BP Oil Supply Alaska, Chevron Alaska, ConocoPhillips Alaska, ExxonMobil Alaska Production Inc. and Unocal Alaska. In 2011, the pipeline carried 3,602,713 gross barrels, according to the State Pipeline Coordinator’s Office.
Badami Oil Pipeline would charge $12.25 to ship a barrel of oil from the Badami Central Processing Unit to Endicott on the 25.1-mile Badami Sales Oil Pipeline, up 46.3 percent from $8.37. In 2012, Badami shipped only for BP Oil Supply Alaska. In 2011, the pipeline carried 450,203 barrels, according to the State Pipeline Coordinator’s Office.
The Northstar Oil Pipeline would charge $5.47 to ship a barrel of oil from the Northstar Production Facility on Seal Island to Pump Station No. 1 on the 17.4-mile Northstar Oil Pipeline, up 19.4 percent from $4.58 per barrel. In 2012, Northstar shipped for BP Oil Supply Alaska and Murphy Crude Oil Marketing Inc. (Alaska). In 2011, the pipeline carried 5,248,646 gross barrels, according to the State Pipeline Coordinator’s Office.
ConocoPhillips-related lines The Kuparuk Transportation Co. would charge 29 cents to ship a barrel of oil from the Kuparuk River unit to Pump Station No. 1, up 13.2 percent from 25.6 cents currently. The company would also charge 21.1 cents to ship a barrel of oil from the Milne Point tie-in to Pump Station No. 1, up 12.8 percent from 18.7 cents per barrel. In 2011, the Kuparuk Pipeline carried 89,953,520 barrels, according to the State Pipeline Coordinator’s Office.
The Oliktok Pipeline Co. would charge $2.37 per barrel to ship natural gas liquids to the Kuparuk River unit, a 408 percent increase over the current rate of 58 cents per barrel. The large increase comes from smart pigging and vertical member support work planned for 2013, on top of a continued trend of reduced throughput, according to the company.
The Alpine Transportation Co. would charge 86 cents per barrel to ship natural gas liquids from the Colville River unit to the Kuparuk River unit, up 10.2 percent from the current rate of 78 cents per barrel, “due primarily to reduced throughput,” the company said.
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