|
Polar LNG applies for pipeline ROW Pipeline would connect Prudhoe Bay to the site of proposed liquefied natural gas plant in Deadhorse; scheduled for summer 2013 Eric Lidji For Petroleum News
Polar LNG LLC is applying for a right of way for a North Slope natural gas pipeline.
The above ground pipeline would run 3.8 miles from Flow Station 1 at the Prudhoe Bay unit to the Polar LNG Pad, formerly known as Child’s Pad, in Deadhorse, paralleling an existing pipeline running from Flow Station 1 to Drill Site 12 and east to the pad.
That route would cross two unnamed lakes.
The 8-inch pipeline would carry between 36 million and 50 million cubic feet per day to a proposed liquefaction plant. Polar LNG plans build the pipeline between early 2012 and mid-2013, and previously said it planned to build the plant in the summer of 2013.
Polar LNG, an affiliate of Fairbanks Natural Gas LLC, would eventually truck liquefied natural gas to Fairbanks and North Pole. The current plan is to direct 75 percent of the fuel to Golden Valley Electric Association and the remainder to existing FNG customers.
GVEA turbine can run on gas Golden Valley Electric Association brought a new turbine online in 2007 at its North Pole plant that currently runs on naphtha, but is designed to also run on natural gas.
Although naphtha is cleaner than other fuels and produced at the Flint Hills refinery located across the street from the plant, it is also tied to crude oil markets and prices.
As currently envisioned, the plant would include three trains producing 255,000 gallons of LNG per day total. The plant could also make up to 12,000 gallons per day of propane.
Around 55 percent of the plant capacity is currently committed and Polar LNG said the excess capacity would be used to expand the natural gas distribution system in Fairbanks.
Fairbanks Natural Gas signed a 10-year supply agreement with ExxonMobil in 2008.
Polar LNG estimated the pipeline will cost around $11 million and will be financed by Pentex Alaska Natural Gas Company, LLC — the company that owns both Polar LNG and Fairbanks Natural Gas — through its majority owner Harrington Partners LP.
| 