Pipeline begins open season

Petroleum News • Alaska

Kenai Kachemak Pipeline LLC is holding an open season to solicit “good faith expressions of interest from persons interested in shipping gas on a firm basis” on the proposed pipeline. Kenai Kachemak Pipeline said Dec. 20 that it anticipates filing an application with the Regulatory Commission of Alaska in the first quarter of next year for a certificate of public convenience and necessity for authorization to construct and operate the proposed facilities, but reserves the right not to file for all of the described facilities if it determines that demands for such service do not justify all of the anticipated facilities. The pipeline will run between the Kenai Nikiski Pipeline and Alaska Pipeline Co. pipelines in or near the Kenai gas field to a point near the town of Anchor Point and is intended primarily to transport natural gas from new fields developed on the southern part of the Kenai Peninsula to the existing pipeline system serving the northern part of the Kenai Peninsula and Anchorage. The 58-mile pipeline may also be used to deliver gas to utilities providing service to customers on the southern part of the Kenai Peninsula.

Kenai Kachemak Pipeline said expressions of interest will be accepted through Jan. 25 from “those persons potentially interested in shipping gas on a firm basis on the pipeline system.” The expressions of interest will be used by the company to determine the level of interest for various portions of the system, to calculate preliminary rates for the planned pipeline system and to ensure the appropriate sizing of the system.

Kenai Kachemak Pipeline will hold an informational meeting for potential shippers in Anchorage Jan. 15 to discuss the proposed pipeline system, the transportation services to be provided through the pipeline and the open season process.

An open season terms sheet and additional information is available from John Zager, Kenai Kachemak Pipeline LLC, phone (907) 263-7662; e-mail [email protected].