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LNG plant could be built on Southcentral barges Alaska gas authority will look at building plant in Alaska for use at old Valdez town site Larry Persily Petroleum News Juneau Correspondent
The Alaska Natural Gas Development Authority wants to look at building the liquefaction plant for its LNG project aboard barges moored at Anchorage and Nikiski, and then towing the facility into place in Valdez.
Such a construction plan could help ensure that more of the jobs go to Alaska workers, and might even reduce construction costs, said Harold Heinze, chief executive officer for the state authority.
More study is needed, Heinze said, including a review of construction costs, any advantages and disadvantages of a barge-mounted liquefaction plant, available work force and other issues. The studies would not focus on how to build a gas liquefaction plant, which exist worldwide, he said, but on what’s different about building one on a barge.
The authority, which was created by voters in November 2002 to determine the economic feasibility of a state-owned and operated pipeline and LNG export terminal at Valdez, will be talking this fall with administration officials and legislators about getting up to $2.5 million in additional state funds for several cost-estimate studies for the LNG project. Barge project on study list On that list for study will be a review of constructing a barge-mounted liquefaction plant at the Port of Anchorage and Nikiski on the Kenai Peninsula, then towing the facility to Valdez, instead of building a land-based plant in the Prince William Sound community. “We have looked at that as a major element of the funding we are putting together,” Heinze said.
The idea is to dredge out a location at the old town site of Valdez, then set the barge on the prepared bottom. “You just ground it,” Heinze said. Berthing facilities for LNG tankers could be built next to the liquefaction barge.
The authority’s funding request asks for $981,000 for a cost study of the gas liquefaction plant and almost $500,000 for work on marine terminal costs at Valdez. The Legislature appropriated just $150,000 for the authority’s work in its first year of operations, and board members have spent much of their time talking of the need for more funding since starting work this summer.
The LNG project is estimated at $12 billion, with $4 billion to cover the liquefaction plant and terminal for LNG tankers.
Cook Inlet contractors have experience building oil field service modules for the North Slope, Heinze said, with a ready-and-able workforce living in the communities. That would mean a better record for Alaska hire instead of bringing in workers to Valdez to build a plant on site. Could help local hire efforts “They bring their own lunch,” and would go with a regular work week instead of non-resident workers who might stay on the job for a week or two and then spend their off-weeks back home, Heinze said. “You would end up with very few travelers on the modular work.”
“There’s a real positive payoff to looking at this type of design approach,” the authority’s CEO told board members meeting in Anchorage Sept. 22. No board members objected to pursuing a study of a barge-mounted plant. Offshore regasification could solve siting issues There also has been a fair amount of talk in the LNG industry the past year or so about putting LNG receiving terminals and regasification plants on offshore barges. Such an operation could help alleviate concerns of waterfront communities that do not want an LNG receiving plant in their front yard.
“There’s a general feeling that offshore solutions are a way to go,” said Jim Jensen, a Massachusetts-based natural gas consultant with 30 years experience in U.S. markets.
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