BP begins permitting for Nikiski gas-to-liquid test facility

Construction expected to start in early 2001, with startup in 2002; operation expected to run for five years

Kristen Nelson

PNA News Editor

BP Exploration (Alaska) Inc. has begun permitting for its gas-to-liquids test facility at Nikiski. “Nikiski is favored over a North Slope option because it offers more benign weather, reduced costs and much easier access in which to test a new technology,” the company said July 25.

BP said it had considered several sites in the Lower 48 and in the United Kingdom for the facility, as well as other sites in Alaska.

“Alaska was chosen because it represents the largest reserve of undeveloped gas in BP Amoco’s portfolio and we have an ongoing commitment to the stakeholders in Alaska to monetize this resource,” the company said.

The facility, which will use approximately five acres of the 23-acre plot, includes an administrative area with a single-story office building and warehouse. The office building will contain administrative offices, the operations center, kitchen, meeting and training rooms and toilet/locker facilities. The warehouse will be for low-hazard storage.

The GTL test facility will include the process structure, air coolers, equipment/instrument enclosure and a tank farm with three storage tanks: a 45,000 gallon product tank for syncrude; a 5,200 gallon Methanol tank; and a 10,000 gallon wastewater tank.

Site preparation is expected to occur in the fourth quarter of 2000 with construction beginning in the first quarter of 2001. Startup will occur in the fourth quarter of 2001 and five years of operation are anticipated.