Alaska Natural Gas Development Authority

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Alaska Natural Gas Development Authority
IN-STATE GAS TAKE-OFF POINTS
Before the Legislative Budget Audit Committee
-and- Senate Resources Committee In
Anchorage, Alaska, on September 1-2, 2004
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Gas Take-Off Points Along the Gas Line

• Provide Gas for
• Electric Power Plants
• Propane Distribution Centers
• Piped Gas Distribution Systems
• Stand Alone Facility Design
• Combined TAPS Pump Station Compressor Station
• Gas Spur Line to Cook Inlet Area

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PROPANE ONLY Plant Configuration
Gas Pipeline (assume 2000 PSIG 28 degrees F)
Reinjected gas liquids
Raw feed gas
Dehydration
Recompression
After-cooling chilling
Expander compressors
Expanders heat exchange
Liquid pump
Residue gas
C4
N2, CO2, C1, C2 some C3
De-ethanizer tower
PROPANE STORAGE
C3 with some C2 C4
C3, C4 some C2
De-propanizer tower
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UTILITY GAS PROPANE Plant
Gas Pipeline (assume 2000 PSIG 28 degrees F)
Raw feed gas
ELECTRIC POWER PLANT and/or LOCAL GAS
DISTRIBUTION
Reinjected gas liquids
Dehydration
Expanders heat exchange
Expander compressors
Liquid pump
Residue gas
C4
N2, CO2, C1, C2 some C3
De-ethanizer tower
PROPANE STORAGE
C3 with some C2 C4
C3, C4 some C2
De-propanizer tower
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Local Access Take-Off Facility for Natural Gas /
Propane

• 10 mmscfpd gas take-off (very small facility)
• Fuel North Poles new 60 mega-watt power plant
• Fairbanks potential gas demand is two to three
  times this size
• Supply combined TAPS PS Compressor Station
  twice over
• Supply a major mine development
• Propane available is 4,000 gal/day (80 recovery)
• Design uses off-the-shelf skid-mounted equipment
• Installed cost is 10.5 million
• Facility cost-of-service
• 50 to 75 cents /gal propane
• 30 cents / mmbtu of gas

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Availability of numerous physical take-off
points for modest volumes

• Gas fired power generation facilities along the
  line key to interior Alaskan and Canadian
  communities energy needs and cost
• Many synergies with compressor station facility
  TAPS pump stations for gas take-off
• Industrial and spur line take-off points should
  be defined before open season
• All gas line project proposals must include
  simple standardized design for gas take-off,
  propane separation, and gas re-injection (also
  hook-in)

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Potential Take-Off Locations for Natural Gas /
Propane

• Galbraith Lake
• Coldfoot
• Yukon River
• Fairbanks
• North Pole
• Delta
• Tok

• Glennallen (spur line)
• Palmer (spur line)
• Valdez
• Canadian Highway
• Beaver Creek
• Haines Junction
• Whitehorse

Associated with Compressor Station
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Alaska gas tariffs proportioned for actual
transportation distance

• Having gas physically available in Alaska doesnt
  mean much if the tariff within Alaska (set by
  FERC, not RCA) includes lost downstream revenues
  as a cost charged against gas taken-off in Alaska
• Communities and industries should enjoy the
  tariff advantage of being located closer to
  Alaskas North Slope gas supply in return for
  public right-of-way
• In-State tariff design can be included in fiscal
  terms of Stranded Gas Act contract and/or grant
  of ROW

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Spur Line to Cook Inlet Area

• High pressure (2,500 psi) gasline (24 inch diam)
  from Glennallen to Palmer (140 miles) can
  supply todays 0.5 bcfpd and costs 300 million
• ANGDA building the gas spur line as a State
  gas transmission utility with low-interest-rate
  debt-financing can reduce the cost of service
  to 0.15 / mmbtu
• Connection and routing dependent on others
  decisions on larger North Slope gas projects
  (going to Delta doubles cost)
• ANGDA will file a State ROW lease application

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• Alaska Natural Gas
• Development Authority
• Homepage is http//146.63.35.79/
• Harold Heinze
• 411 W. 4th Ave, Anchorage 99508
• 257 1347
• Fax (907) 646 - 5005
• hheinze_at_jpo.doi.gov