overview & status may 2001. joint team objectives create an economic project (competitive cost...
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![Page 1: Overview & Status May 2001. Joint Team Objectives Create an economic project (competitive cost of supply) Develop sufficient technical information to](https://reader034.vdocuments.us/reader034/viewer/2022042703/56649e2d5503460f94b1dc40/html5/thumbnails/1.jpg)
Overview & StatusOverview & Status
May 2001May 2001
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Joint Team Objectives
• Create an economic project (competitive cost of supply)
• Develop sufficient technical information to support FERC/NEB applications as soon as possible (target - year end 2001)
• Prepare for next phase of activity
Safe and Environmentally ResponsibleSafe and Environmentally Responsible
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Miles
0 5 10 15 20 25
TAP
S
Northstar
Endicott
PrudhoeBay
Kuparuk
MilnePoint
NPRA
ANWR
CoastalPlain
(1002 Area)
Col
ville
Riv
er
LJL (April, 1997)
Pt. Thomson
Developments
Major Discoveries
Alpine
Liberty
Badami
Location Map
Alaska Gas Resources & Major Producers
• North Slope known resource ~ 35 Tcf• Prudhoe Bay – 8 Bcf/d of production
currently• Reinjected into reservoir• Ultimate resource estimates ~100 Tcf
Alaska Gas Owners
ExxonMobilPhillips
State
OthersBP
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0
10
20
30
1990 2000 2010
0
25
50
75
BCF/DayBCF/DayTCF/YearTCF/Year
ExistingExisting
GrowthGrowth
8
52
0
25
50
75
E. Asia U.S.
Bcf/d
Expected demandminus knownsources delivered
2010 New Source Needs
Source: NPC, December 1999 & Tokyo Gas, 2001
Supply/Demand - Asia Comparison
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North American Gas Supplies/Markets
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Joint Team Organizational ChartManagement Committee
Program MgrAK to Alberta
Program Mgr Alberta to
Market
Program Mgr NGL
Project SvcsMgr
Enviro. &Regulatory
Mgr
External Affairs Mgr
CommercialMgr
PTUPBU
Interface
Project Mgr Gas Treatment
Plant
Project Mgr P/LAK to Alberta Project Mgr P/L
Alberta to Mrkt.
Project Mgr Infrastructure
Studies
Project Mgr NGL
Facilities
AK to Alberta Sector
Alberta to Mrkt. Sector
NGL
Economic Modeling/Integration
Bus Develop.
US Regulatory
Canadian Regulatory
Enviro. Mgr. US
Enviro. MgrCanada
Land Mgr.AK to Alberta
Land Mgr.Alberta to Mrkt.
Technical Services Mgr.
Project Controls Mgr.
ManagingProject Counsel
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Southern Pipeline RouteSouthern Pipeline RouteLand Status For
Pipeline Route (in Greenin Green)Alaska Miles KilometersFederal 249 401State 368 607Municipalities 20 32Native Corp. 60 97Private 86 138 _Total 783 1275
Canada Miles KilometersCrown 402 647Provincial 678 1091First Nations 70 113Private 49 78 _Total 1199 1929
Total Route 1982 3204
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Northern Pipeline RouteNorthern Pipeline Route
Land Status For Pipeline Route ((in Pinkin Pink)Alaska Miles KilometersFederal 48 77State 157 253 _Total 205 330
Canada Miles KilometersCrown (Federal) 763 1229Provincial 378 609First Nations 224 361Private property 49 78 _ Total 1414 2277
Total Route 1619 2607
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Alberta to MarketPipeline System (B-C) :New-Build and/or Expansion
NGL Extraction Facility:Removal of C2+
Alaska to AlbertaPipeline System (A-B) :– Buried, High Pressure, Chilled Pipeline– Intermediate Compression– Block Valve Stations– Intermediate Pigging Facilities
Overall Project ScopeGas Treatment Facility (Prudhoe Bay) :Removal of Acid Gases - CO2, H2SCompress / Chill gas to P/L entry conditions
Environmental / Regulatory – USField studies
Environmental / Regulatory – CanadaField studies
Land – Canada (2)
Land – US Lower 48 US Alaskan
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The “Seven Lenses” of Evaluation
• Economics
• Revenues
• Jobs
• Gas Access
• Safety
• Timing
• Environment
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Conceptual Pipeline System Components
• Pipeline system is comprised of four main facilities:– Buried pipeline (~48”, ~2500psi, high strength steel)– Intermediate compression facilities– Block valve stations– Intermediate pigging facilities
To MarketPrudhoe
GTP
Reinjection to Oil Fields
Intermediate Compression Facilities
Valve Stations
North SlopeCompression
Buried Pipeline
Gas Production
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Applying 21st Century Technology
Attributes– Advanced materials & design– High Pressure operation– Buried line with thermal control– Fewer, more powerful compressor stations– Advanced construction (trenching, welding, river crossings)– Advanced communication & control systems– Advanced monitoring and maintenance systems
Benefits– Lower fuel consumption– Reduced emissions– Smaller footprint– Reduced environmental impact– Expansion capacity– Lower cost of supply– High reliability
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Conceptual Pipeline Construction Plan
• Multiple construction spreads working over 3 year period.
• Onshore– Principally winter construction – especially in permafrost.– Pipeline buried except for few specific crossings.– Grade-only construction where soils allow.– Primarily snow pads where soil/vegetation require protection. – Gravel construction pads required where protection is required
and slopes are excessive for snow pads.
• Offshore– Summer construction from lay vessels.– Primarily offshore supply from existing infrastructure.
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Wrap-up
• We are fully engaged in a joint program to evaluate and progress a large, modern pipeline from Alaska to Canada and the lower 48 states
• There is a growing market for Alaskan gas, but we must be cost-competitive to be a viable project
• It is premature to preclude any options at this point
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Contract Awards
• The project will be in excess of 75 million dollars, with 90 employees, and 500+ contractors and subcontractors
• The following ten contracts were awarded for:– 4 for Engineering and Conceptual Design
• North Slope to Alberta• Alberta to US Markets• Gas Treatment Plant (GTP)• Natural Gas Liquids (NGLs)
– 2 for Environmental– 4 for Land Services
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Contract Awards
• The companies that were awarded the contracts are:– VECO, headquartered in Anchorage, in a joint venture with Fluor,
based in Sugar Land, Texas and Calgary– The AlasCan Group, based in Calgary, is in a joint venture between
five companies: Kellogg Brown & Root in Houston and Edmonton, COLT Engineering in Calgary, Michael Baker Jr.’s Anchorage office, Natchiq and NANA/Colt Engineering LLC, both in Anchorage
– Natchiq, headquartered in Anchorage in a joint venture with Parsons Engineering based in Arcadia, CA.
– The URS team based in Anchorage, will dedicate over 100 employees to this project
– AMEC Earth and Environmental, based in Calgary will dedicate over 80 employees to this project
– American Reclamation Group LLC based in Anchorage– Scott Land and Lease, based in Calgary and Progress Land
Services, based in Edmonton– Wilbanks Resources Corporation, based in Denver