|
Study to look at feasibility of gas line on Kenai Seventy-five mile pipeline would run south from Kenai gas fields to Ninilchik, Homer; in future could transport gas north to Railbelt Petroleum News Alaska
Subsidiaries of Homer Electric Association and Enstar Natural Gas Co. have signed a memorandum of understanding with Unocal Alaska for a feasibility study of a natural gas transmission pipeline on the southern Kenai Peninsula.
Norm Story, Homer Electric Association general manager, said in a Dec. 12 statement that Alaska Electric Generation and Transmission Inc. (of which Homer Electric is the primary owner), Alaska Pipeline Co. (a subsidiary of Enstar) and Unocal have signed a memorandum of understanding for a study of gas supply and demand, natural gas requirements, technical and engineering constraints and regulatory and financing issues.
The proposed pipeline carry gas south from the Kenai gas fields to Ninilchik, then south to Anchor Point and ultimately to Homer. In the future, the companies said, this pipeline could transport and deliver gas from the southern peninsula to existing customers on the Kenai Peninsula and the Railbelt.
Spur lines would be constructed to serve individual customers and to pick up gas from other producing gas fields along the proposed route. The entire pipeline from Kenai to Homer would be about 75 miles long. The final project plan, scope and construction phases will be determined as part of the study. Capital cost for the entire system is estimated at $45 million dollars. Construction could begin in 2002 Construction on portions of the project could begin as early as 2002. Several public meetings are planned to further inform the community about the project and gather feedback from members of the community.
“If all this goes through, we would anticipate a lot of new exploration and drilling out there,” Unocal Alaska spokeswoman Roxanne Sinz told PNA.
Story said the memorandum formalizes the desire of the companies to work together and provides a framework for the project.
“We believe that by working together we have a far better chance of accomplishing the task than if one company works alone,” he said.
“The initial concept is for AEG&T to own the natural gas transmission line,” Story said. “Enstar would own and operate retail distribution spurs from the gas transmission line and Unocal would be a shipper of gas on the system.” Homer Electric serves peninsula Homer Electric Association is a member-owned electric cooperative that distributes electricity to about 26,000 customers on the Kenai Peninsula in Homer, Seldovia, Port Graham, Nanwalek, Sterling, Kasilof, Soldotna, Ninilchik, Anchor Point and Kenai.
Unocal, an exploration and production company, has worldwide natural gas reserves of 6.6 trillion cubic feet, two-thirds of the company’s overall hydrocarbon reserves. The company’s net worldwide natural gas production averages 2 billion cubic feet a day, including about 1 billion cubic feet per day in North America.
Enstar Natural Gas distributes natural gas to about 105,000 customers in Southcentral Alaska, including a portion of the Kenai Peninsula. Enstar is a division of Semco Energy Inc., a diversified energy and infrastructure company that distributes natural gas to more than 350,000 customers combined in Michigan and Alaska.
| 