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Right of way application filed for Kenai Kachemak gas line Norstar Pipeline Co., a subsidiary of Enstar’s Alaska Pipeline Co., has been formed to operate the pipeline. Kristen Nelson PNA Editor-in-Chief
Kenai Kachemak Pipeline LLC has submitted a revised right of way application to the Alaska Department of Natural Resources. DNR said April 2 that the revised application reflects changes to the right of way legal description and the project description.
The March 20 application is from Union Oil Company of California, dba Unocal Alaska, and Marathon Oil Co., both of whom are currently drilling for gas on the lower Kenai Peninsula.
Unocal and Marathon told the state that, subject to reserves, Marathon plans to develop the G. Oskoloff pad in the Ninilchik unit and Unocal plans to develop the Pearl pad in the South Ninilchik unit and the A pad in the Anchor Point prospect.
Marathon and GUT LLC, a wholly owned subsidiary of Unocal, have formed a limited liability corporation, Kenai Kachemak Pipeline LLC, to construct the pipeline.
Norstar Pipeline Co., a subsidiary of Enstar’s Alaska Pipeline Co., has been formed to operate the pipeline. 62-mile line The 62 mile long gas transmission line will be buried steel pipe with diameter ranging from 12 inches to 16 inches and will handle a potential flow rate of up to 330 million standard cubic feet per day. The main line will extend from an existing Enstar facility east of Kalifonsky Beach Road to Unocal’s proposed production pad A, just east of the Sterling Highway south of Anchor Point.
The main line will connect to production pads that Unocal and Marathon anticipate developing. There will also be tie-ins for future potential lines from current exploration sites. The companies also said that tie-ins are planned to distribute natural gas to communities in the vicinity of the pipeline.
The companies estimate the cost of materials at $21.6 million, construction and installation at $50 million and annual operations and maintenance at $500,000. Buried pipeline Kenai Kachemak Pipeline may authorize placement of utilities lines in the trench with the natural gas transmission line. Enstar Natural Gas Co. could use one utility line for distribution of natural gas and a communications company could use one for fiber optic cable distribution, the company said.
The utility lines would not be required for construction or operation of the gas transmission pipeline, but would be installed at the same time to eliminate the need for additional trenching in the future.
Construction is expected to begin in September and take 15 months. Operations would begin in November 2003.
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