DGC issues consistency determination for proposed Kenai Kachemak pipeline

Petroleum News Alaska Staff

The state Division of Governmental Coordination issued a final consistency determination July 23 for the Kenai Kachemak pipeline, finding the 32-mile project consistent with the Alaska Coastal Management Program.

The buried line will be 12-inch diameter steel pipe and will connect new gas discoveries to existing Alaska Pipeline Co. and Marathon Oil Co. Cook Inlet gas pipeline infrastructure and future gas pipeline infrastructure.

DGC said natural gas would flow between the Susan Dionne pad near milepost 128 of the Sterling Highway and the Kenai gas field. The Grassim Oskolkoff pad would connect at the intersection of the Ninilchik unit boundary and the Alaska Department of Transportation and Public Facilities right of way.

There will be valves at the inlet and outlet of the pipeline, at each well site and at least every eight miles along the route. The pipeline will be able to run smart pigs and will have external protective coatings and an impressed current cathodic protection system. Staking, clearing, grubbing and grading are planned to begin in January 2003, with pipeline trenching and construction January through October 2003.

Horizontal directional drilling will be used to install the pipeline under the Kasilof River, Crooked Creek and Coal Creek. The pipeline will cross 22 water drainages and construction in wetland areas will take place in the winter, from mats if winter conditions do not support construction on frozen ground.

Pipeline commission and startup is projected for November 2003.

Marathon announced successful testing at the Ninilchik exploration south of Kenai in April. The success of the discovery well, the Grassim Oskolkoff No. 1, was announced earlier in the year.

Marathon is the operator of the Ninilchik unit, and holds a 60 percent interest; Unocal holds the remaining 40 percent interest.