RCA approves gas line to Cosmo field

The Regulatory Commission of Alaska has approved an expansion of Enstar Natural Gas Co’s service area to include a natural gas pipeline connecting to BlueCrest Alaska Operating LLC’s Cosmopolitan oil field off the southwestern coast of the Kenai Peninsula. The eight-inch, 3,283-foot-long transmission gas line will connect the field’s onshore facilities to the closest point on Enstar’s gas transmission pipeline network at Anchor Point.

BlueCrest is developing the field as an oil field, using directional drilling from onshore - the field is expected to go on line shortly and will presumably produce some associated gas along with the oil. The field does hold substantial gas resources as well as oil but the gas reservoirs are at relatively shallow depths, requiring development from offshore platforms. BlueCrest has yet to decide on whether to proceed with gas development at the field.

According to RCA’s Enstar service area approval order, BlueCrest has requested gas from Enstar through the gas line from Anchor Point to support construction and drilling at Cosmopolitan until the field produces sufficient gas to be self supporting. The pipeline could also be used to export gas from the field, should the field at some point start producing more gas than it requires to fuel field operations - Enstar had told the commission that one reason that BlueCrest wants the pipeline is to avoid stranding any gas that might be produced at the field.

If BlueCrest produces sufficient gas, the new pipeline will connect a new gas production unit into the Cook Inlet pipeline system, Enstar told the commission. BlueCrest has projected that the pipeline could deliver up to 50 million cubic feet per day of gas into Enstar’s system, Enstar said.

The proposed pipeline will improve the overall reliability of Enstar’s gas supply system and add a new source of gas for the system, the commission said in approving the pipeline construction.

- ALAN BAILEY