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Old 09-21-2017, 08:48 AM
 
Location: Interior Alaska
2,383 posts, read 3,063,560 times
Reputation: 2373

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I'm sure there are far more important points I could pick out of this article, or from this subject, to bring up, but the part that stuck out to me was that they are required only to keep its customers heated for five days in the winter.

Of course, I'm envisioning a situation where the entire borough is on LNG, like is current for heating fuel, and that's just not reality. I will probably never have natural gas, because I will never live in town. They will never run lines out to... anywhere I will ever live.

Several years ago our area was out of power for nearly two weeks after a wind storm. Also doesn't happen that often, but still.

Quote:
LNG makes deal with Texas-based firm for supply of natural gas

Kevin Baird kbaird@newsminer.com

FAIRBANKS — The Alaska Industrial Development and Export Authority-owned Titan LNG has reached a natural gas supply deal with the Texas-based Hilcorp, which owns a natural gas development operation in the Cook Inlet.

This morning the AIDEA board will meet to decide whether the deal satisfies requirements of House Bill 105, which authorized the state to finance the Interior Energy Project.

Gene Therriault, team leader of the project, said if the board finds this deal with Hilcorp satisfies the requirement, it would unlock the entire funding package for the Interior Energy Project: $57.5 million in capital funds, $125 million in an AIDEA loan program, and authorization for as much as $150 million in bond funding.

Unlocking the full financing package for the Interior is crucial to adding more customers.

According to an Interior Energy Project memo, the IEP team has proposed two costly projects. The first is a 5.25 million gallon storage tank for south Fairbanks that would cost $42 million. Fairbanks Natural Gas has two storage facilities of 90,000 gallons and 250,000 gallons, but the Regulatory Commission of Alaska requires the utility to hold enough reserve gas to keep its customers heated for five days in winter. The facility is necessary to add more customers.

The second is a $45 million Titan 2 gas liquefaction plant that can produce 100,000 gallons per day. The existing Titan plant has the capacity to produce 50,000 gallons daily. Liquefied natural gas, often referred to as LNG, is natural gas cooled to minus 260 degrees. At this point it shrinks 600 times, liquefies and becomes more stable. Semitrucks then haul the LNG to the Fairbanks.

Fairbanks Natural Gas has about 1,100 customers in Fairbanks and has laid 70 miles of pipe to be connected to additional customers.

The Interior Gas Utility has 75 miles of “pre-build” pipe laid in the ground in the North Pole area.

In 2015, AIDEA purchased Pentex, the parent company of Fairbanks Natural Gas, the Titan LNG natural gas liquefaction plant, and a handful of other energy-related subsidies. Both AIDEA and the Interior Gas Utility are working toward a sale agreement to sell Pentex to the borough-owned utility to expand the natural gas system in the Fairbanks region.

LNG makes deal with Texas-based firm for supply of natural gas | Local News | newsminer.com
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Old 09-21-2017, 05:02 PM
 
Location: Anchorage
1,952 posts, read 1,585,083 times
Reputation: 5156
"According to an Interior Energy Project memo, the IEP team has proposed two costly projects. The first is a 5.25 million gallon storage tank for south Fairbanks that would cost $42 million."

"The second is a $45 million Titan 2 gas liquefaction plant that can produce 100,000 gallons per day."


I guess "costly" depends on your viewpoint. The Alaska Gasline Development Corporation has $64 million left in its budget, which I am quite certain they will burn through without any firm agreements by the end of the state's fiscal year. If instead, that money was taken away from them and spent on these projects, you'd have a 5.25 million gallon storage tank in Fairbanks and halfway to another LNG plant in Cook Inlet.
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Old 09-21-2017, 07:07 PM
 
Location: Anchorage
1,004 posts, read 1,174,017 times
Reputation: 1375
They will study the project and blow through the $64 million in about 2 months!
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Old 09-21-2017, 09:13 PM
 
Location: Interior Alaska
2,383 posts, read 3,063,560 times
Reputation: 2373
I have a very difficult time believing that they can retrofit their liquefaction plant to double the throughput for $45M. Budget seems extremely unrealistic. I'm not sure they'll make it 2 months. We need this project, so people need to hammer it out.
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