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Unocal, Marathon going forward with Kenai Kachemak pipeline project
Companies form new company to lead pipeline development; first phase between Ninilchik and the Kenai gas fields planned to be operational in 2004
By Petroleum News • Alaska
Unocal Alaska and Marathon Oil Co. said Dec. 11 that they have formed the Kenai Kachemak Pipeline LLC, which will be the primary developer of a new natural gas pipeline system on the southern Kenai Peninsula. The newly formed company will provide natural gas supplies to industrial customers and to utilities for distribution to residential and commercial users throughout Southcentral Alaska, the companies said in a statement.
A conceptual study that also involved Enstar and the Homer Electric Association was begun a year ago. The first phase of the pipeline — between the Ninilchik and Kenai gas fields — is planned to be operational by the beginning of 2004.
“Our study shows that a pipeline system in the region in feasible; therefore Unocal and Marathon will move forward with detailed engineering and permitting,” said Charles Pierce, vice president for Unocal Alaska.
John Barnes, manager of Marathon’s Alaska business unit, said his company is pleased with the progress of the study group and looks forward to working with Unocal to prove up necessary natural gas on the companies respective prospects and bring the gas to market.
“A significant portion of Marathon’s capital spending next year in Alaska will be directed toward increasing natural gas resources that can be produced through the new pipeline,” Barnes said.
Pipeline will follow highway The companies said that the ultimate capacity and route of the pipeline system is dependent on future results of gas exploration drilling on the Kenai Peninsula.
The current plan calls for the pipeline to be installed in phases between existing pipelines in the Kenai gas field and the Anchor Point area. A possible pipeline segment between Anchor Point and Homer has been proposed as a distribution line to be constructed and owned by Enstar. The pipeline route will essentially follow the Alaska Department of Transportation right of way easements along the Sterling Highway, the companies said. Initial pipeline surveying of the route has begun.
Enstar also participating Tony Izzo, president of Enstar, said his company is a strong supporter of the project. “It will provide additional gas supplies for our customers throughout Southcentral Alaska. The new pipeline system will also encourage gas exploration and development, as well as bring the benefits of clean and efficient natural gas to homeowners and businesses in the area.”
The companies said Enstar will provide support for the engineering, design and construction of the pipeline system and will likely play a role in the system’s operation. Enstar is also expected to provide local gas distribution services in the service area.
Homer Electric Association and its general manager, Norm Story, were involved in developing the project.
“HEA has been a strong proponent of the pipeline,” said Unocal’s Pierce. “Homer Electric will continue to work closely with Unocal and Marathon to help ensure that the project reaches a successful completion.”
“Homer Electric remains excited about helping to move the project forward because it is very important to our members and the Southern Kenai community as a whole,” said Story.
A public meeting was scheduled in Anchor Point Dec. 13 to provide additional information and solicit public feedback.
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