Alaska to Alberta Pipeline Project Overview and Current Status - July 18, 2001
This report outlines the current status of the Alaska to Alberta Pipeline project, which aims to evaluate the economic viability of transporting natural gas from Alaska to Canada and the lower 48 states. Key activities include ongoing technical and regulatory studies, government engagements, community discussions, and route evaluations. Important considerations involve cost, safety, environmental impacts, and market readiness, with numerous contractors involved in advancing project objectives. The goal is to complete engineering and route studies by year-end while ensuring competitive viability.
Alaska to Alberta Pipeline Project Overview and Current Status - July 18, 2001
E N D
Presentation Transcript
Overview & Status July 18, 2001
Outline • Brief Overview • Current Activity / Progress • Government Engagement Issues • Forward Plan
Joint Team Objectives • Assess the economic viability of the project • Focus on route evaluation • Cost and environmental considerations • Prepare sufficient information to support potential permit applications Safe and Environmentally Responsible
Fluor Veco NGL Extraction Facility: Removal of C2+ Gas Treatment Facility (Prudhoe Bay) : Removal of Acid Gases - CO2, H2S Compress / Chill gas to P/L entry conditions Natchiq Parsons Environmental / Regulatory – Canada Field studies AMEC Earth and Environmental Land – US Alaska American Reclamation Group Land – Canada (2) Scott Land and Lease Progress Land Services • Alaska to Alberta • Pipeline System (A-B) : • Buried, High Pressure, Chilled Pipeline • Intermediate Compression • Block Valve Stations • Intermediate Pigging Facilities Fluor Veco Land – US Lower 48 Alberta to Market Pipeline System (B-C) : New-Build and/or Expansion Wilbanks Resource Corporation The AlasCan Group Environmental / Regulatory – US Field studies URS Overall Project Scope
The “Seven Lenses” of Evaluation • Economics • Environment • Gas Access • Jobs • Revenues • Safety • Timing
Current Activity / Progress • Contractors On-Board (approx. 500) • Technical / Regulatory Work Proceeding • Defining Commercial Issues • Ongoing Discussions with Interested Parties • Hundreds of public/private meetings • Engaging Governments & Communities
Current Technical Studies • Process Development • Acid Gas (CO2, H2S) Removal Technology • NGL Removal Processes • Pipeline Hydraulic Simulations (Over 1,000 Cases) • Pressure (1,750-3,000 psi) vs Diameter (42”-56”) • Comparisons of Compressor Drivers • Throughput and Expandability
Compressor Stations vs. Throughput System Optimization Plot Example 50 45 40 35 44” 75 mile station spacing 48” 30 52” Compressor Stations 56” 25 (@2500 psig) 20 150 mile station spacing 15 10 5 0 0 1 2 3 4 5 6 7 Nominal Volume BCFD
Current Technical Studies • Materials • Feasibility of High Strength Steel • Logistics • Port Surveys in Anchorage, Seward, Valdez and West Coast • Review of Potential Fabrication Site Locations • Trucking and Highway Analyses • GTP Sealift Analyses – Potentially Largest Ever • Construction Technology • Directionally Drilled River Crossings • Trenching Technology • Construction Equipment Requirements & Availability
Regulatory / Environmental & Land Activities • Summer field work / center line studies • Cultural resource surveys • Land owner discussions • Beaufort Sea survey
Government Engagement • Ongoing Discussions with Governments • US and Canadian Federal • State of Alaska • Canadian Provincial/Territorial/First Nations
State Engagement Issues • Initiate dialogue between Producers and State of Alaska regarding fiscal stability / certainty • Objective is to have key terms understood prior to the January legislative session • Key discussion items • Valuation clarity (severance and royalty) • Pipeline vs Producer issues • Pipeline Ad Valorem certainty • Gas take-in-kind and nomination process • Project risk and long-term certainty June July Aug Sep Oct Nov Dec Agree ground - rules Working discussions Draft valuation, AVT contract terms Agreed terms pre - session
Simplification of State Royalty, Severance Valuation • Common royalty and severance methodologies • Transparent pricing • Simplicity best way to minimize future concerns • Wellhead price for royalty and severance linked to Lower 48 with transportation differential • Define market price • Agreement on gas valuation terms • Concurrence with FERC/NEB tariff terms • Processing fees
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 not yet clear that we can develop an economic project • It is premature to preclude any options at this point • Still targeting completion of engineering and route studies by year end