The Regulatory Commission of Alaska (RCA) has granted a certificate of public convenience and a construction permit to PTE Pipeline LLC (PTEP) to construct and operate a condensate pipeline connecting Point Thomson production facilities with BP plc’s Badami Pipeline on the North Slope.

The 22-mile, 12-inch diameter Point Thomson Export Pipeline is designed to transport 70,000 b/d of condensate currently stranded at Point Thomson to market through the Badami Pipeline, Endicott Pipeline and Trans Alaska Pipeline System (TAPS), according to the RCA’s 10-page order. Initial Point Thomson Unit production is 10,000 b/d, and the pipeline’s excess capacity “is intended to accommodate future increased production in the Point Thomson Unit and accommodate the needs of other shippers,” RCA said.

PTEP is a subsidiary of ExxonMobil Corp., which is part of a general partnership that owns and operates the Endicott Pipeline.

PTEP has estimated the cost of the construction project at $253 million. Construction of the pipeline is required as part of a settlement agreement between ExxonMobil and the state resolving disputes related to development of the Point Thomson Unit (see Daily GPI, April 2). The project is important to the state because it will increase throughput on TAPS and open the eastern North Slope to new hydrocarbon development. Point Thomson is Alaska’s largest undeveloped oil and gas field, containing 25% of the North Slope’s known conventional natural gas.

RCA required PTEP to file construction plans by Jan. 31, 2013.

The U.S. Army Corps of Engineers in October issued a record of decision and Section 404 wetlands permit that were needed for the Point Thomson liquid condensate project (see Daily GPI, Oct. 30).

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