Unocal talks to regulators about building oil pipeline across Cook Inlet

Although no funds have been committed to build it, company is looking at a line from the Granite Point tank farm to the east side of Cook Inlet

Kristen Nelson

PNA News Editor

Unocal Alaska Resources has begun discussions with regulators on permitting for an oil pipeline across Cook Inlet.

Kevin Tabler, Unocal’s land and government affairs manager, confirmed July 1 that the company is looking at the possibility of a line from its Granite Point tank farm to the east side of Cook Inlet.

Unocal has not, Tabler said, established that such a line would be economic, but has begun an analysis. No funds, he said, have been committed to build the line.

Tabler said that work has begun on pipeline route access and right-of-way acquisition discussions because before applying for a permit the company has to know what the route will be.

“We’re starting to look at what it would take to permit it and the lead time for permitting is so long in that whether this project happens or not you still have to start the process now,” he said.

The purpose of the line would be to extend the life of production from the company’s fields.

“So we’re doing an economic analysis to see whether or not it’s cost effective,” Tabler said. “We believe that it will extend the life of the existing reserves. Now there’s hope that others would be able to utilize the pipeline and we believe that it will be more cost effective than utilizing the existing infrastructure. But we’re doing that analysis now to see.”

He said that the proposed line would run across the inlet from Unocal’s tank farm at Granite Point to tie in to the east side — west to east, in a southerly direction.

“We’re still in the investigating stage,” Tabler said, but we’re a little further along in the process. We think that there’s merit to it.”