Utility abandons pipeline plan - June 02, 2002

Providing coverage of Alaska and northern Canada's oil and gas industryJune 2002

Vol. 7, No. 22

Week of June 02, 2002

Utility abandons pipeline plan

Allen Baker, PNA contributing writer

A plan to build pipelines linking the two refineries in North Pole to the Fairbanks International Airport and the Sourdough Terminal has been shelved.

Golden Valley Electric Association had sought a right of way along the Tanana flood control dike west of the Richardson Highway for the lines, one 4.5 inches in diameter and the other 3.5 inches.

“We have backed away from that project,” Kate Lamal, vice president of power supply for the Fairbanks-based electric utility, told PNA May 21. “It’s just something that didn’t fit in with our business plan.”

The two potential customers were Williams Alaska Petroleum Inc. and Petro Star Inc. But Jeff Cook of Williams said his company’s participation would have been contingent on the line being an economical alternative for Williams.

“We don’t send a whole lot of product over to the airport,” he said.

While it seems odd for an electric utility to be in charge of a pipeline, Golden Valley already owns the 2.3-mile line that brings crude oil from the trans-Alaska oil pipeline to the two refineries.

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