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September 2015

Vol. 20, No. 39 Week of September 27, 2015

AKLNG to study 48-inch line

The Alaska LNG project partners have agreed to Gov. Bill Walker’s request that they study a 48-inch line.

The Alaska Dispatch News is reporting that the decision was announced Sept. 23 at an Alaska Gasline Development Corp. board meeting.

When the project gave legislators a quarterly update Sept. 9, Steve Butt, AKLNG project manager, said a study of a 48-inch line was out for approval by sponsors. He said there was a purchase order for some $1 million of 48-inch pipe for testing, and that pipe was expected to arrive early next year. (See story in Sept. 20 issue.)

Butt said a 48-inch line would cost more to build than the 42-inch line AKLNG has been studying, but would cost less to operate. He also said that because of the extra weight in the line - a much thicker pipe is required to handle natural gas pressures than that used for the 48-inch trans-Alaska oil pipeline - there were concerns about laying the 48-inch line across Cook Inlet.

The federal Pipeline and Hazardous Materials Safety Administration will need to have confidence that a 48-inch line will work, Butt said, estimating that it will take six to eight months of testing the 48-inch pipe to get to the same level the project is with tests of the 42-inch line.

Another issue at the Sept. 9 update was discussions the state is having with TransCanada about buying out the pipeline company so the state would have a full 25 percent interest in the project and what the governor has described as a seat at the table.

The governor said Sept. 23 that he would call a special session to address the TransCanada buyout issue, but details had not been announced when Petroleum News went to print with this issue.

- KRISTEN NELSON






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