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ExxonMobil applies for Point Thomson pipeline right of way Pipeline materials pegged at $15 million, construction at $25 million; materials to be delivered to Prudhoe in 2005, pipeline to be built in winter of 2006 Kristen Nelson PNA Editor-in-Chief
The State Pipeline Coordinator’s Office has received an application for a pipeline right of way lease for the Point Thomson gas cycling project export pipeline from ExxonMobil Pipeline Co.
The July 11 application is for a 22-mile common carrier pipeline to carry sales quality condensate from the proposed Point Thomson central processing facility some 60 miles east of Prudhoe Bay to a connection point with the existing Badami sales oil pipeline at the Badami central processing facility.
ExxonMobil said it intends to form a limited liability company for the pipeline and will amend its right of way application to reflect the new name once the LLC is formed. From Point Thomson to Badami The pipeline will begin at the proposed Point Thomson central processing facility in section 3, township 9 north, range 23 east, Umiat Meridian, and end at a connection to the existing Badami sales oil pipeline in section 8-T9N-R20E, UM.
The entire 22 miles is on state lands. The pipeline will be on vertical support members with a five-foot clearance between the bottom of the pipe and the tundra surface; stream crossings will be above grade using VSMs.
The temporary construction right of way will be 400 feet wide and the permanent operating right of way will be 100 feet wide.
The outside diameter of the pipeline will be 12.75 inches; pipeline wall thickness will be 0.281 inch; external coating will be polyurethane foam insulation with galvanized metal outer jacket; there will be no cathodic protection.
There will be a meter and heater at Badami; a pig launcher facility at Point Thomson and a pig receiver at Badami; there will be pumps at a meter at the Point Thomson central processing facility. Throughput of 100,000 bpd ExxonMobil said the pipeline will be designed for a nominal 100,000 barrels per day and for a minimum operational life of 30 years.
There will be mainline valves at the pipeline inlet and outlet; mainline valves or vertical loops — to be evaluated and defined during detailed design — may be installed to limit the amount of liquid hydrocarbon that can be spilled in the event of a pipeline leak or rupture.
There will be no field camps on the pipeline right of way; construction personnel, estimated at 350, will be housed in a construction camp at Point Thomson.
There will be a permanent camp at Point Thomson for operations and maintenance personnel and two full-time equivalent workers will be required for operation and maintenance of the pipeline; repairs and special maintenance will be staffed and executed according to job requirements. Materials shipments in 2005 Pipeline materials will be shipped to the Prudhoe Bay area for interim storage throughout 2005. Materials and equipment will be moved to the pipeline right of way as soon as ice roads are passable early in 2006.
Ice road construction will begin in late 2005 or early 2006, followed immediately by VSM installation and other pipeline construction. Work is expected to be completed by mid-April 2006, with hydrostatic testing prior to mid-April while the right of way ice road is passable or later in 2006 with access to pipeline limited to portions of the line on permanent gravel pads.
Operation is scheduled to begin in the fourth quarter 2006.
The estimated cost of materials, based on conceptual engineering, is approximately $15 million; construction and installation of the pipeline, also based on early conceptual engineering, is approximately $25 million.
Annual operating and maintenance costs are estimated at $5 million. Common carrier pipeline The Point Thomson pipeline will be a common carrier pipeline.
ExxonMobil said that all connections of other field’s gathering systems at intermediate point along the pipeline would be evaluated on an individual basis.
Principal factors in technical feasibility of connections would include: quality of hydrocarbons being transported; suitability of hydrocarbon for pipeline movement including temperature, vapor pressure, pumpability, sulfur content, composition and basic sediment and water content; location of connection; rate, continuity and control of flow into and out of pipeline; leak detection monitoring requirements; relevant state and federal regulations; ownership and lease negotiations; operatorship and custody transfer protocol; and economic feasibility.
ExxonMobil also said that a draft memorandum of understanding is being negotiated between ExxonMobil Production Co. and the state to cover management and costs reimbursement for state permit processing for the Point Thomson gas cycling project; provisions of the MOU are expected to include activities of the State Pipeline Coordinator’s Office, including reimbursement of the state for costs associated with processing the right of way application; the process of receiving, reviewing and approving the application including timing; development of a plan for submittal and review of technical information with expected level of details.
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