RCA approves two additional compressors

Kristen Nelson

Petroleum News

The Regulatory Commission of Alaska has approved an application from Kenai Beluga Pipeline to modify the existing compressor and install two additional compressors at the Kenai Pipeline Junction.

KBPL requested permission to modify an existing compressor station and connect and operate two additional compressors at KPL Junction.

The Kenai Beluga Pipeline is a natural gas pipeline system connecting the east and west sides of Cook Inlet at KPL Junction, allowing bidirectional gas flow across the inlet.

KBPL told the commission that additional compression was needed to increase incremental throughput due to growing demand and declining production on the west side, and also to provide redundancy for existing compression. The east-to-west flow of gas is currently dependent upon a single compressor with a capacity of 63 million cubic feet per day; the new compressors will allow for transportation of up to 118 million cubic feet per day from east to west. In addition to the new compressors, the project includes expanding the pad, installing new foundations and lighting, installing new metering equipment and a new electrical module, and extending an access road.

Enstar Natural Gas Co. supported the application, saying additional compression will provide critical operational redundancy.

In response to objections from Homer Electric Association and Tesoro Alaska, who questioned the cost and the need for the added compression, KBPL said added compression was needed to prevent anticipated shortfalls of gas supplies available to utilities and consumers on the west side. KBPL said that since bidirectional flow began in the winter of 2012-13, gas from the east side has become increasingly important because west side demand has increased while supply has decreased. Flow increased from 1.7 billion cubic feet moving from east to west in 2012 to 2.7 bcf in 2013, with peak usage averaging 24 million cubic feet per day in November 2013 and further increases expected in 2014.

RCA said HEA and Tesoro would have an opportunity to participate in KBPL’s anticipated 2916 rate case.

KBPL also said additional gas must be shipped east to west when gas production on the west side trips offline, and said that over the past 12 months Steelhead gas production tripped offline on some 32 occasions requiring KBPL to ship gas east to west to accommodate west side demand. The company also said the existing compressor was not adequate to compensate if other pipelines in the system, such as the APL Turnagain Arm pipeline, fail, and, while the single compressor is newly installed and well maintained, there will inevitably be some future mechanical failures.