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Northern Gas Pipelines, (Alaska Gas Pipeline, Denali - The Alaska Gas Pipeline, Mackenzie Valley Gas Pipeline, Alaska Highway Gas Pipeline, Northern Route Gas Pipeline, Arctic Gas, LNG, GTL) is your public service, objective, unbiased 1-stop-shop for Arctic gas pipeline projects and people, informal and rich with new information, updated 30 times weekly and best Northern Oil & Gas Industry Links on the Internet.  Find AAGPC, AAGSC, ANGTL, ANNGTC,  ANGDA, ANS, APG, APWG, ANGTA, ANGTS, AGPPT, ANWR, ARC, CARC, CAGPL, CAGSL, FPC, FERC, GTL, IAEE, LNG, NEB, NPA, TAGS, TAPS, NARUC, IOGCC, CONSUMER ENERGY ALLIANCE, AOGA,AOGCC, RCA and more...

2009 LINKS: FERC Reports to Congress, 1, 2, 3, 4, 5, 6, 7....; USGS Arctic Gas Estimates; MMS hearings: RDC, Our NGP, AJOC, DH, ADN, KTUU; Enstar Bullet Line: Map and News Links; ANGDA; Alaska Energy Forum; Prosperity Alaska

2008 LINKS: Shell Alaska OCS Study; Mackenzie Gas Project EIS; Join the Alaska Gas Pipeline Blog Discussion; Governor Sarah Palin's AGIA Links; 2007 ACES tax bill links; Department of Revenue 2007 ACES tax documents;  2007 ACES tax Presentations; 2007 ACES tax news; Alaska Gas Pipeline Training and Jobs; Gas Pipeline and Economic Development; Andrew Halcro; Bjørn Lomborg; FERC's Natural Gas Website Links

WASHINGTON: Alaska Natural Gas Pipeline Act; History of H.R. 4; DOE Energy Bill Position, 6-02; Daschle-Bingaman Energy Bill (Alaska, Sec. 1236 & tax credit, Sec. 2503 & H.R. 4 Conferees), Tax Credit; See amendments, "Energy Policy Act of 2002";  "Alaska Natural Gas Pipeline Act of 2001 (Draft)" & Background Paper, 8-9-01;Alaska Legislature Joint Committee position; Governor's position; Governor's 10-Point Plan; Anadarko Analysis; U.S. Senate Energy Committee Testimony, 10-2-01 - text version;  U.S. Senate Energy Committee Testimony, 9-14-00; Report on the Alaska Natural Gas Transportation Act of 1971, prepared by staff of the Federal Energy Regulatory Commission, 1-18-01

ALASKA: 1-23-03, Governor Frank Murkowski's State of the State Speech; 2002 DRAFT Recommendations to 2003 Legislature; '02 Alaska Legislation; Alaska Highway Natural Gas Pipeline Policy Council; Joint Legislative Gas Pipeline Committee; 9-01 Alaska Models: Canadian Routes, LNG, GTL; HR 4 Story; Cook Inlet Supply-Demand Report: AEDC; Commonwealth North Investigation & Our Article; Report: Backbone; Legislature Contacts; State Gas Pipeline Financing Study; 5-02 Alaska Producer Update; Kenai: "Oil & Gas Industry Issues and Activities Report, 11-02"; Alaska Oil & Gas Tax Structure; 2-27-02 Royalty Sale Background; Alaska Gas Pipeline Office opens, 7-01, and closes, 5-02; Betty Galbraith's 1997-1998 Chronology Our copy.

CANADA: 1-10-03, "Arctic Gas Pipeline Construction Impacts On Northern Transp."-Transport Canada-PROLOG Canada Inc.-The Van Horne Institute;Hill Times Reports, 8-30-02; 9-30-02, Cons. Info. Requirements; CBC Archives, Berger Commission; GNWT Economic Impact Study, 5-13-02; GNWT-Purvin & Gertz Study, 5-8-02; Alberta-Alaska MOU 6-02; Draft Pan- Northern Protocol for Oil and Gas Development; Yukon Government Economic Effects: 4-02 & PPT; Gas Pipeline Cooperation Plan Draft & Mackenzie Valley Environmental Impact Review Board Mackenzie Valley Pipeline MOU Draft, 6-01; FirstEnergy Analysis: 10-19-01; Integrated Delta Studies; National Post on Mackenzie Pipeline, 1-02;Northern Pipeline Act;  Haida Nation v. British Columbia; Indian Claims Commission; Skeena Cellulose decision -- aboriginal consultations required, 12-02; Misc. Pipeline Studies '02

COMPANIES: Alaska Gas Producers Pipeline Team Newsletter, 7-27-01; APG Newsletter: 5-02, 7-02 & 9-02; ArctiGas NEB PIP Filing Background; NRGPC Newsletter: Fall-02;  4-02 ArctiGas Reduces Field Work; BP's Natural Gas Page; Enbridge Perspective; Foothills Perspective; Williams Perspective; YPC Perspective, 7-02

 MEDIA REFERENCE: Alaska Journal of Commerce; Alaska Inc. Magazine; Anchorage Daily News; Canadian Broadcasting Corporation; Fairbanks Daily News Miner, Juneau Empire; Northern News Services; Oil & Gas Reporter; Petroleum News Alaska; Whitehorse Star, etc.

EXTENDED CONFERENCE NEWS: Alaska Support Industry Alliance, Anchorage Chamber of Commerce Canadian Institute, Insight Information, Inuvik Petroleum Shows, International Association of Energy Economists, Resource Development Council for Alaska, Ziff Energy Group

 

LEST WE FORGET!

 

 

 

 

 

   

 

 

Northern Gas Pipelines: GTL News and Reference

The little publicized or appreciated 6th Natural Gas Conversion Symposium convened at the spectacular Alyeska Prince Hotel property in Girdwood, Alaska from June 17-23, 2001, with 300 specialists representing corporate, academic and governmental programs throughout the world.  A small sampling of the many presentations herein leads one to conclude that energy markets are on the brink of accepting gas-to-liquid (GTL) technology as a respected competitor among economically viable energy alternatives.  While fully transforming GTL development from the laboratory (and current pilot projects) to the market place may not occur within the timeframe for the first Alaska North Slope (ANS) gas project, it will likely provide a means for transporting future ANS gas reserves to market via the Trans-Alaska Oil Pipeline.  If stakeholder consensus on an overland gas pipeline or LNG project cannot be achieved in the 2001-2004 timeframe, GTL may very well be the technology employed to commercialize the gas later in this first decade of the century.  -dh (8-5-01)

Page contents below: 

1.  6th Natural Gas Conversion Symposium 

2.  References to Current, Alaska GTL Activities 

3.  GTL news

4.  Roland R. George, Purvin & Gertz: "Monetizing Stranded Alaska Gas: Focus on GTL," 2001


 

1.  Highlights of  6th Natural Gas Conversion Symposium ... (Obtain free presentation documents here):

a.  "Chairman's Address": Dr. Theo H. Fleish, Global Gas Technologies, BP.  "... My proposal to hold the 6th NGCS in Alaska was greeted with strong support by the membership because of both the opportunity to visit this unique and beautiful country and because of the emerging importance of Alaska's vast natural gas resources for all gas monetization options including gas conversion.... Natural gas conversion is the basis of a large and important industry today.  More than 4 TCF of gas are annually converted into products such as hydrogen for refineries and ammonia for fertilizer (See Agrium reference below, in 6-17-01 news item.).  ... Natural Gas Conversion to liquid fuels, fuel additives, chemicals, polymers and many more consumer products will benefit the customer through new, cleaner and lower cost products, the environment through lower global greenhouse gas emissions and lower local exhjaust emissions, and the gas resource holder through more and higher value gas utilization options. 

b.  "A DOE Perspective on Natural Gas": Rita A. Bajura, Director, National Energy Technology Laboratory, DOE.  "Gas-to-liquids is a three-step process: syngas production, Fischer-Tropsch synthesis, and product upgrading.... Interest is growing in gas-to-liquids technology as a means to monetize stranded gas, access new markets, and generate clean fuels.  Advances in technology that lower capital costs are making gas-to-liquids more economically feasible.  Gas-to-liquids technology is especially important to Alaska.  As much as 100 Tcf of natural gas may reside on Alaska's North Slope.  Gas-to-liquids technology may provide a means to bring this gas to market and, at the same time, extend the life of the Trans-Alaska Pipeline System.  The gas may also be transported through a proposed new natural gas pipeline. ..."

c.  "GTL, How to Stay in Business", MOSSGAS Presentation.  This 'slide only' presentation effectively highlights the challenges of MOSSGAS' Mossel Bay, South Africa project to produce and convert natural gas and condensate to transportation fuels and alcohols (i.e. excellent quality unleaded gas, low aromatic content kerosene, ultra low sulphur diesel).  The project is wholly owned by the government, with a staff of 1,000.  To deal with high project costs, managers deal with market volatility by hedging (i.e. buying puts and selling calls of crude futures.)

d.  BP presentations: 

"Welcome Address": Richard Campbell, Regional President, BP Alaska.  "... BP believes that this option (i.e. overland gas pipeline) will return the highest value for all stakeholders and land natural gas in Lower 48 markets at a cost that will make it competitive with other supply sources. ... But what about gas-to-liquids?  BP believes the potential market for GTL is huge.  We think 25 world-scale plants could be commissioned by 2015.  Graham NcNeillie will be providing an overview....  We are well under way with construction of our $86 million GTL plant in the Nikiski area of the Kenai Peninsula.  ... With construction of this plant, a major portion of BP's global GTL program has now shifted to Alaska.  The plan is to start up in the first half of 2002 and produce 300 barrels of syncrude per day from 3 million cubic feet of gas.  More importantly, this facility will test the compact reformer technology developed by BP and our partner Kvaerner.  We have high hopes that this technology will achieve a step change in GTL costs....  We are also confident the industry at large will continue to develop technology that will make GTL a growing busines in the years ahead.  I'm often asked if BP is planning to build a commercial GTL plant in Alaska.  GTL is one of three options we are evaluating, along with a gas pipeline and LNG.  Certainly the pipeline option is farthest along...."

"The Role of Gas Conversion in the Gas Economy", Graham McNeillie, Vice President, Global Gas Technologies, BP.    "The world's plentiful gas supply sources, continued technological innovation, the desire for less carbon-intensive fuels, and the need for cleaner air in urban areas, will continue to ensure an increase in importance of natural gas to the development of world, regional and country economies.  Looking into the future one can now envision an economy powered principally by natural gas.  This Gas Economy would be supplied from a truly global market consisting of large gas reservoirs geographically spread but linked to consumers by such options as gas pipelines and LNG but also by large tankers carrying liquid or solid products manufactured from gas via gas conversion.  In this gas world, the role of natural gas conversion is to not only provide another option to monetize gas for existing markets, but also to create new markets.  The opportunity presented by gas conversion is enormous.

e.  "Welcome Address", Michael P. Rampage, Executive Vice President, ExxonMobil Research & Engineering Co.  "...we at ExxonMobil are advancing technologies for 1. improved LNG production, processing, and delivery, 2. the development of high-strength and more economic steel for use in gas pipelines, and 3. advanced technology for converting natural gas-to-liquids, to name just a few.  ...  In the United States, ExxonMobil is studying the potential for developing Alaska's North Slope gas resources.  We are hopeful we can bring that gas to market via a pipeline to the Lower 48 states.  ExxonMobil has devoted a significant amount of technical and financial resources (over $110 million) on direct efforts to commercialize the gas on Alaska's North Slope.  This does not include the cost of research to develop technologies that could be applied at multiple locations.  We have developed a good understanding of potential GTL and LNG options to commercialize Alaskan gas, and with the improving market for gas in the Lower 48, it is appropriate that we examine the pipeline option.  

On December 6, 2000, the three major Alaska North Slope gas producers (ExxonMobil, BP, and Phillips) announced a joint work program to evaluate and progress an Alaska Gas Pipeline Project. The key program activities over the coming months will involve conceptual design, project costing, environmental considerations, commercial structure, and assessment of overall viability. At this stage it is important to consider the costs, benefits, and environmental impacts of all potential routes in order to identify the best project. It is essential that an eventual project be economically viable and competitive with other potential gas supplies. We are also working to better understand which is the environmentally preferred route, considering length, footprint, local environmental sensitivities, and other factors.  Regarding Gas-to-Liquids, we believe this is an important option for commercializing stranded gas, and ExxonMobil has been a leader in the development of new technology. As a result of the merger we were able to combine Exxon’s high performance slurry Fischer-Tropsch technology with Mobil’s advanced catalytic wax upgrading technology to provide ExxonMobil with industry leading GTL capability; AGC-21 produces clear, versatile liquids that will bring market value as high quality, low-emissions fuels, lube basestocks, and petrochemical feedstocks, and you will be able to hear more about our work in coming presentations. ExxonMobil’s technology is ready and we believe that it is economic in the right circumstances. ExxonMobil plans to continue its research efforts to further improve the technology and is considering the best location to use that technology. As noted in our annual report, we are actively exploring the opportunity to apply this proprietary Gas to Liquids technology by developing a world-scale GTL plant in Qatar.

2.  References to current, GTL activities with Alaska implications (See Remote Gas Strategies):

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a.  Alaska Natural Gas to Liquid (See ANGTL web page) executive, Richard Peterson, has devoted his company and personal resources to communicating the benefits of "clean diesel" to North Slope natural gas decision makers.

b.  BP has developed what may be a break-through in technologies which convert natural gas directly into high-value liquid fuels and other products such as petro-chemical feedstock.

c.  Chevron and Sasol signed an agreement to create a new global joint venture founded on gas-to-liquids (GTL) technology. The agreement, signed on June 9 in Johannesburg, South Africa, is a very promising prospect for the development of clean fuels.

d.  GTL Fact Sheet: "Discussions are underway to develop a GTL production facility in Alaska to produce 40,000 barrels per day (23% of our current demand) with a goal to produce 300,000 bbl/d. However, with existing technology, oil pipeline capacity and North Slope gas reserves over 1,000,000 bbl/d could be produced....  Since the late-1990s nearly every major oil company including: ARCO, Chevron, Conoco, Exxon, Phillips, Mobil, Statoil, and Texaco announced plans to build pilot plants or commercial plants to produce synthetically derived diesel fuel through the improved GTL process."  (See current news updates below, and elsewhere in the archives.)

e.  Benefits of GTL technology:

Monetizing gas reserves. GTL has the potential to convert a significant percentage of the world’s estimated proved and potential gas reserves – estimated to be upwards of 14,000 TCF of natural gas – which today hold little or no economic value, into several hundred billion barrels of oil equivalent of great economic value to the companies and countries that control them.  Eliminating costly or environmentally disadvantageous practices. GTL will help eliminate the need for flaring or reinjecting natural gas, permitting early development and production of oil fields shut in by the inability to dispose of associated gas and reducing the negative environmental impact of flaring.
Economic development of remote gas. GTL will permit the economic development of many remote gas discoveries that are otherwise deemed too far from market to have any economical value.  Development of Environmentally-Superior Liquid Fuels. GTL will yield synthetic hydrocarbons of the highest quality that can be used directly as fuels or blended with lower quality crude oil derived fuels to bring them up to compliance with more stringent environmental and performance specifications. Syntroleum is currently pursuing the development of such fuels with a number of parties, including DaimlerChrysler and Southwest Research Institute to test several of its fuels for certification with the EPA. The company is also working with Argonne National Laboratories and others to develop GTL fuels for use in reformers for fuel cells.
 f.  Purvin & Gertz produces this study addressing the feasibility of a North Slope GTL plant with TAPS transportation to Valdez vs. a "South Shore" tidewater conversion plant receiving throughput from a feeder line connecting with an Alaska Highway gas pipeline project.
 
g.  Sand Creek Energy is developing a plan to convert the methanol plant into what could be the first Gas-to-Liquids plant in the United States which would supply commercial quantities of high value fuels including cleaner burning sulfur and aromatic free diesel fuel, fuel which could be used for fuel cells and other high value products made from natural gas.

 3.  GTL news:

1-27-03.  ADN-Wesley Loy reports on success and potential of BP's Alaska GTL project (Part II of gas trilogy.  See part I).  See PNA report by Kay Cashman.

2-21-02.  Speaking at the Pac Com Expo in place of Shane O'Leary, BP's GTL program manager, BP's Kenai GTL Project, Steve Fortune (Photo) said the Nikiski facility is 93% complete and will be finished by April after a year's construction.  Producing "clean diesel", the project will reflect the latest computer control technology and was designed for a 5 year life.  Via the internet, experts from all over the world will be able to assist the facility with problem areas and optimizations.  The new facility will also host a prototype, 250KW fuel cell powering the offices, yard, warehouse...and, surplus supplies for the local electric grid.  Ninety-seven percent of the facilith's water use will be recycled.  He said new ideas and new technology are "bubbling" and that there are more innovations ahead.  Forty of the $86 million spend on the facility was spent in Alaska, he said.  The project has employed 220 construction workers and envisions 20 permanent staff members.

8-23-01.  Alaska Highway Natural Gas Pipeline Policy Council, Valdez.  (Obtain presentations here.)

  • Richard Peterson: Alaska Natural Gas to Liquids.
  • Shane O'Leary, BP's GTL program manager, BP's Kenai GTL Project.

NIKISKI--A state of-the-art power generation system designed to increase elecseangtl.pngtrical efficiency and reduce emissions will be demonstrated at BP's gas-to-liquids (GTL) test facility.  The technology could have far-reaching implications for power  generation in remote areas like villages in rural Alaska.  The U.S. Department of Energy is providing funding assistance with a $2 million grant requested by U.S. Senator Ted Stevens.  Chugach Electric Association also secured and will administer a $450,000 grant from the Cooperative Research Network of the national Rural Electric Cooperative Association.  The fuel cell will be connected to the local electrical grid operated by Homer Electric Association to study operating characteristics and costs.   

BP will install a Siemens Westinghouse "solid oxide fuel cell" unit that will convert natural gas directly into electricity through an electrochemical process similar to that used in a battery.  With few moving parts, it runs quietly, and it significantly reduces air pollution.  The $6.5 million project will begin operating by mid-2003.  "This technology isn't commercial today, but we believe it has tremendous potential, both for BP and for the State of Alaska, and this project will help to accelerate commercialization," said Shane O'Leary, BP's GTL program manager.  "It may be very attractive for future use in remote and environmentally sensitive locations like offshore oil and gas platforms, as well as areas of rural Alaska that rely on diesel fuel for power generation."  BP's nikiski fuel cell project will use natural gas as feedstock.  it will generate 250 kilowatts of electricity--roughly the consumption of 50 average homes--and power the warehouse and administration building at the GTL facility.  The technology eventually could be applied to enhance electrical efficiency with any hydrocarbon fuel, including diesel.  The unit operates at an electrical efficiency of 45%, compared to about 30% for diesel generation.  Total energy efficiency can be increased to more than 70% by capturing and using heat produced in the process.  It also reduces carbon dioxide emissions by more than a third from an equivalently sized diesel generator and virtually eliminates emissions of other pollutants prevalent in generation systems that rely on combustion, including carbon monoxide, nitros oxide, sulfur oxide, particulates and volatile organic compounds.  BP's $86 million GTL demonstration plant is designed to test proprietary technology developed by BP and Kvaerner to convert methane into high-quality, sulfur-free synthetic crude oil.

8-4/5-01 WeekendThis week, non-oil industry sources told Northern Gas Pipelines that new technology is making the gas-to-liquid (GTL) natural gas conversion process increasingly viable.  Companies are achieving breakthroughs in reducing cost of production for this 'clean diesel'.  Leading energy companies--some with Alaskan and Mackenzie Delta operations--are developing/improving new technologies.  Several new GTL plant construction projects could be initiated within 3 years.  One major attraction of GTL conversion is that it enables stranded gas reserves to be transported to market through existing oil pipelines, avoiding complexities attending the permitting, regulation and operation of new gas pipeline systems.  This news caused us to review substance of presentations delivered during the 6th Natural Gas Conversion Symposium convened at the spectacular Alyeska Prince Hotel property in Girdwood, Alaska from June 17-23, 2001.  We summarized several key presentations for your evaluation, here on our GTL page.

6-17-01.  Lieutenant Governor Fran Ulmerulmerparkerroderick.png addressed the Natural Gas Conversion Symposium conference this week in Girdwood, saying that much of the discussion focused on gas-to-liquid technology.  (Photo: Lieutenant Governor Fran Ulmer attending Natural Gas Pipeline Policy Council presentation at Agrium's Kenai Nitrogen Operation with Agrium's Lisa Parker and Council Member Jack Roderick. 5-17-01)  "Experts from around the world have gathered in Alaska to share research results and scientific studies of this promising source of clean fuels for the world's energy hungry population," she said.gasconf6-19.png  "Alaska is particularly likely as a candidate for such a facility because of our proximity to a high demand market for clean diesel (California) and because the product could be transported down the existing oil line (batched or in suspension)."  According to Ulmer, "That could add to the useful life of that line and in turn make the development of marginal oil more likely."  (Photo: Two participants enjoying the technical program and scenery at Girdwood's Alyeska Prince Hotel this week, were Ad R. Punt-left, Shell Global Solutions' Business Manager Gas, from The Hague and his colleague, Dr. Arend Hoek, Shell's Principal Researh Technologist, from Amsterdam.  Program information here. )       

 

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