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Glenfarne announces more North Slope gas pipeline agreements
Alan Bailey for Petroleum News
On Jan. 22 Glenfarne Alaska LNG LLC announced new agreements that the company has made with companies that Glenfarne wants to engage for the construction of a natural gas pipeline from the North Slope to Southcentral Alaska.
Glenfarne plans a two-phase project. The first phase would involve construction of 739-mile, 42-inch diameter pipeline from the North Slope to Southcentral and the second phase would involve the construction of a North Slope gas conditioning plant and an LNG export terminal at Nikiski on the Cook Inlet, together with a pipeline connecting the terminal to the North Slope gas line. The phase one pipeline is planned to be constructed in four simultaneous sections, Glenfarne said.
The new agreements relate to the phase one project. The companies have received conditional awards for pipeline construction, including comprehensive pricing and technical specifications, Glenfarne says.
Tim Fitzpatrick, Glenfarne communications director, has confirmed to Petroleum News that his company anticipates making a final investment decision for the phase one project in the next few weeks and that pipeline construction could begin in December.
The conditional awards Glenfarne has made conditional awards to work on pipeline construction to MasTec Inc.; Quanta Services Inc.; a joint bid between Michels Pipeline Inc. and ASRC Energy Services LLC; a joint venture between Associated Pipe Line Contractors Inc., Doyon Energy Services LLC and Cruz Construction Inc.; a joint venture between Barnard Pipeline Inc and SICIM S.p.A; and a joint venture between VINCI Construction subsidiary Spiecapag and U.S. Pipeline.
"These world-class pipeline construction partners were selected based on their qualifications and experience to build the Alaska LNG pipeline, one of the most important pieces of energy infrastructure in the world," said Glenfarne Chief Executive Officer Brendan Duval. "Each has dedicated a significant amount of time and resources in estimating and bidding for these roles, and their early involvement is foundational for this pipeline."
Glenfarne also plans to hire engineering company Worley Limited to provide engineering, procurement and construction management services for the phase one project. Worley conducted the engineering needed for a final investment decision.
For the pipeline construction Glenfarne anticipates the need for 700,000 metric tonnes of piping for the main pipeline, together with an additional 25,000 metric tons of piping for a lateral pipeline to the Point Thomson field. Point Thomson has a potential supply of clean natural gas.
Gas supplies for Alaska Glenfarne says that, in addition to conditional awards for pipeline construction, it has signed a non-binding letter of intent with Anchorage based Enstar Natural Gas Co. for a 30-year supply of natural gas using the North Slope gas line. The agreed arrangement would require the negotiation of definitive agreements and approval by the Regulatory Commission of Alaska.
"This represents a part of the continuous and diligent work between Enstar and Glenfarne over the past year," said Enstar President John Sims. "It also furthers Enstar's 65-year history of supporting development of Alaska's resources, along with our ongoing mission to secure a long-term and reliable natural gas supply for Southcentral Alaska. We are optimistic about the historic progress Glenfarne has made toward bringing North Slope gas to market, benefitting all Alaskans."
As previously reported by Petroleum News, Glenfarne has a letter of intent with Donlin Gold Mine for the construction of a 315-mile gas pipeline from Southcentral Alaska to the planned mine and a gas-fueled electricity generation plant for the mine.
"Our agreements with Enstar and Donlin help ensure that the pipeline can deliver competitively priced natural gas within Alaska," said Duval. "We recognize the critical role that the pipeline will play in the future of Alaska's economy, and we are in discussions for gas sales to additional customers that we look forward to serving."
Gas supplies into the pipeline For the supply of gas into the pipeline on the North Slope, Glenfarne has established agreements with several North Slope producers, including ExxonMobil and Hilcorp Alaska. ConocoPhillips has also indicated that it will continue to advance gas supply agreements for pipeline use and help position the project for long term success, Glenfarne says. Glenfarne had previously announced a gas sales precedent agreement with Great Bear Pantheon, the company planning to develop the Ahpun oil and gas field, near the North Slope Haul Road.
--ALAN BAILEY
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