Alaska Gasline Development Corporation

Report
Society of Petroleum
Engineers
ASAP Project Overview
January 9, 2014
Today’s Presentation
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Alaska Gasline Development Corporation
Enabling Legislation – HB4
Alaska Stand Alone Gas Pipeline Project Scope
Line Pipe Material Work Plan
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ASAP — The In-state Pipeline Project
April 2010: HB 369 mandated that Alaska Housing Finance Corporation (AHFC)
facilitate development of a plan for an in-state pipeline project.
July 2010: AHFC established the Alaska Gasline Development Corporation
(AGDC) as a subsidiary corporation to take over project planning and execution.
April 2013: HB 4 mandates AGDC to advance an in-state gas pipeline from
North Slope to Fairbanks and Southcentral to an open season and sanction.
ASAP is that project: the Alaska Stand Alone Pipeline.
Also known as the in-state pipeline.
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Alaska’s Energy Situation
 North Slope energy rich
 30+ Trillion cubic feet of
natural gas
 Cook Inlet Basin in decline
 Creating uncertainty as early
as 2018
 Cost of residential heat
 Fairbanks heating oil
~$30/MMBTU
 Cook Inlet natural gas $9 $10/MMBTU
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2013 Legislative Action – AGDC & HB4
 Authorizes AGDC to construct gas pipeline from Prudhoe Bay to
Fairbanks and Southcentral Alaska
 Established a new public corporation
 Authorizes AGDC to work on ASAP plus other projects, issue bonds, and
determine ownership model
 Established a 7-member Board of Directors
 Authorizes AGDC to issue revenue bonds
 Creates new regulatory framework for contract carriers
 Requires all state departments, agencies, and public corporations to
work expeditiously with AGDC on permits and authorizations
 Provided $355 million in 2013 to advance the ASAP project to open
season and sanction
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Cook Inlet Basin Production Forecast
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ASAP Project Scope
 Mainline
 36” diameter pipe
 737 miles long
 1,480 psi max operating
pressure
 Fairbanks Lateral
 12” diameter pipe
 35 miles long
 Tie-in w/mainline at MP 458
 500 Mmscf/day – AGIA limit
 North Slope Gas Conditioning
Facility (GCF) at Prudhoe Bay
 More off-takes possible
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Stage Gate Approach
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ASAP Work Underway
 Preparing for new AGDC
organizational structure
 Project Execution Plans
 First board meeting held
October 30, 2013
 Program Management
Contractor (PMC) on board
 2013 major work activities
 Advancing FEL-2 (Pre-FEED) facilities and pipeline engineering
– Open season management contractor selected
– Construction planning and logistics
– Regulatory engagement
– PHMSA special permit
– 2013 winter field programs
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Field Program Continues Winter 2013-14
 Hundreds of geotechnical
boreholes from Yukon River to
Point Mackenzie
 Geohazard investigation
 Stream crossing surveys
 Air monitoring: 18-month duration
 Terrain unit mapping
 Cultural resource surveys
 Routing surveys
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Preliminary Design – Phase I Tasks
 Task 1 – Geothermal Methodology
 Task 2 – Initial Frost Heave Analysis
 Task 3 – Geo-database Development
 Task 4 – Field Program Development
 Task 5 – Line Pipe Materials Research
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Design Approach Flowchart
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Line Pipe Materials Research
 Research material specifications for arctic applications
 Develop schedule for line pipe material development
 Identify and contact potential suppliers and review Line Pipe
requirements
 Acquire material samples for small-scale testing
 Complete small-scale material tests
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ASAP System Schematic
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North Slope Gas Conditioning Facility
Gas Processing
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ASAP - Composition
Component
Mole %
Methane (C1)
88.75
Ethane (C2)
5.93
Propane (C3)
1.83
i-Butane (i-C4)
0.09
n-Butane (n-C4)
0.14
Pentanes+(C5+)
0.07
Carbon Dioxide (CO2)
2.50
Nitrogen (N2)
0.69
Hydrogen Sulfide (H2S)
0.00
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ASAP – Pipeline Pressure Profile
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ASAP – Pipeline Temperature Profile
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ASAP – Pipeline Materials
Design Parameter
ASAP Mainline
Fairbanks Lateral
Nominal Pipeline Diameter
Maximum Allowable Operating
Pressure
Yield Strength (SMYS)
36 inches
12 inches
1,480 psig
1,480 psig
70.0 ksi
52.0 ksi
Pipe Specifications
API 5L PSL2
API 5L PSL2
DSAW
DSAW or HFERW
60F
60F
–50F for Aboveground
0F for Buried
0F
Manufacturing Process
Maximum Operating
Temperature
Minimum Design Temperatures
(for ductility analyses)
Wall Thickness, Weight per Foot
Location Class 1 F = 0.72
0.527 inches, 199.4 lb/ft 0.330 inches, 43.7 lb/ft
Location Class 2 F = 0.60
0.632 inches, 238.5 lb/ft 0.330 inches, 43.7 lb/ft
Location Class 3 F = 0.50
0.758 inches, 285.0 lb/ft 0.330 inches, 43.7 lb/ft
Location Class 4 F = 0.40
0.947 inches, 354.5 lb/ft 0.375 inches, 49.5 lb/ft
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ASAP –Arctic Geohazards
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Maximum Curvature vs. Time
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ASAP –Planned Material Tests
• Working with Potential Material Vendors
• Expecting Pipe to be Tested by Summer
• Planning both small scale and full scale
tests
• Small scale tests to fully identify material
inputs to project predictive models
• Full scale tests to validate the project
predictions
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Typical Pipeline Construction
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Mainline
 Almost entirely buried except:
 North Slope
 Fault Crossings
 Some Major waterways
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Scale of Construction Activities
 Considerable construction
workforce
Over 8,000 direct jobs
Over 15,000 indirect jobs
 335,000 tons of steel for the pipeline
 9,000 truckloads of pipe travelling
4 million miles
 10 million cubic yards of earthwork
 15 construction camps
 6 construction spreads
 3 years to construct – winter and summer construction
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ASAP Schedule
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ASAP Cost to Consumers
Heating Cost Comparison
Fairbanks Now
Fairbanks ASAP Estimate
Natural Gas - $23.35
Diesel - $30.00
Natural Gas - $8.25-$10
Anchorage Now
Anchorage ASAP Estimate
Natural Gas - $9.65
Natural Gas - $9 - $11.25
Price listed per 1 MMBtu’s (1,000,000 btu’s) in 2012 dollars. Estimated cost of gas to consumers at the burner tip.
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Questions?
Alaska Gasline Development Corporation
3201 C Street, Suite 200
Anchorage, Alaska 99503
(907) 330-6300
www.agdc.us
Frank Richards, P.E.
ASAP Pipeline Engineering Director
Keith Meyer, P.E., Ph.D.
ASAP Pipeline Engineering Manager
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