NGI The Weekly Gas Market Report / NGI All News Access

Group Wants to Build Spur Off Proposed Alaskan North Slope Line

April 4, 2005
/ Print
| Share More
/ Text Size+

Looking to keep attention on natural gas supply from Alaska's North Slope, the Alaska Natural Gas Development Authority (ANGDA) is seeking state permission to build a spur pipeline from the proposed North Slope to Valdez long line to route supplies to the Cook Inlet Basin. The spur would be built through state land from Glennallen to Palmer, AK.

The authority expected to file the application for the 24-inch spur with the state on Friday, but ANGDA CEO Harold Heinze told NGI that the application would be filed Monday. The spur line would tap into a larger proposed line to the Lower 48 that has already been proposed. Officials have said that if the larger line doesn't become a reality, the spur line could still be part of a smaller line that travels from the North Slope to Cook Inlet.

Formed in June 2003 by Alaska Gov. Frank H. Murkowski, ANGDA's purpose is to develop, construct, manage, and operate a gas pipeline from the North Slope of Alaska and a spur line to Southcentral Alaska.

Speaking at the Agrium Task Force meeting in Kenai, AK last month, Heinze said the 2,500 PSI buried spur line would be able to supply the current 0.5 Bcf/d of gas use over the 140 miles from Glennallen to Palmer. He noted that the connection points and the routing of the $300 million line still depends on "other decisions" on larger North Slope gas projects. However, he did acknowledge that going to the Delta would likely "double" the project's cost.

According to the Associated Press, Heinze said the right-of-way sought covers about two-thirds of the land needed for the project. If the main gas line fails to materialize, another option is a line going directly from the Slope to the inlet, Heinze said. It would follow the same route.

Getting permission to build either of these on state land poises the authority to progress on the project when the time is right, Heinze said. This is the first major step in making the spur gas line a reality, he added.

Over the past few years, dwindling natural gas reserves in the Cook Inlet basin have prompted fears that industry will flee the area.

©Copyright 2005 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.

ISSN © 2577-9877 | ISSN © 1532-1266
Comments powered by Disqus