Society of Petroleum Engineers
ASAP Project Overview
January 9, 2014
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Today’s Presentation
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.
ASAP is that project: the Alaska Stand Alone Pipeline. Also known as the in-state pipeline.
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.
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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
pressureFairbanks 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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Gas ProcessingNorth Slope Gas Conditioning Facility
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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 36 inches 12 inches
Maximum Allowable Operating Pressure
1,480 psig 1,480 psig
Yield Strength (SMYS) 70.0 ksi 52.0 ksi
Pipe Specifications API 5L PSL2 API 5L PSL2
Manufacturing Process DSAW DSAW or HFERWMaximum Operating Temperature
60F 60F
Minimum Design Temperatures(for ductility analyses)
–50F for Aboveground0F for Buried
0F
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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Almost entirely buried except:North SlopeFault CrossingsSome Major waterways
Mainline
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Scale of Construction Activities
Considerable construction workforceOver 8,000 direct jobsOver 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 Natural Gas - $8.25-$10
Diesel - $30.00
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 Corporation3201 C Street, Suite 200Anchorage, Alaska 99503
(907) 330-6300www.agdc.us
Frank Richards, P.E.
ASAP Pipeline Engineering Director
Keith Meyer, P.E., Ph.D.ASAP Pipeline Engineering Manager