Fairbanks cooperative Golden Valley Electric applies for pipeline permit

FAIRBANKS — Golden Valley Electric Association has applied for a state permit to build a short North Slope pipeline that could move natural gas from a flow station to a proposed liquefaction plant.

The pipeline would be part of a network to create liquefied natural gas that could be trucked to Fairbanks, the Fairbanks Daily News-Miner reported.

“This is just a piece of the puzzle,” said GVEA power supply engineer Paul Park.

Most Fairbanks homes are now heated by fuel oil. The high expense has led many residents to turn to wood heat, which contributes to a particulate problem that has put the Fairbanks North Star Borough out of compliance with federal clean air regulations.

GVEA purchases power generated in part by natural gas turbines in southcentral Alaska and relies on diesel to generate additional power.

The permit application with the Department of Natural Resources seeks a 10-inch, above-ground pipeline that would start at Flow Station No. 3 near Prudhoe Bay. The line would extend 2,650 feet to a site north of Spine Road where GVEA hopes a gas liquefaction facility will be built.

The application says GVEA wants to transport 29.5 million cubic feet gas through the pipeline per day. The application seeks a 200-foot-wide right of way for the pipeline over state-owned lands.

An LNG pad would cover up to 12 acres.

Flint Hills Resources in November filed a similar application. Flint Hills previously had worked with GVEA to advance the LNG project but pulled out and severed its partnership with GVEA.

A private company, Spectrum, and Fairbanks Natural Gas also have filed application to transport North Slope natural gas.

Construction on the pipeline could begin in fall 2013. Completion is projected to take a year.

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