The Arctic Pilot Project

Milne, K.C. (Petro-Canada)

OnePetro 

This paper describes the proposed Arctic Pilot Project, consisting of transmission, liquefaction terminal, shipping, and receiving terminal. Emphasis is on the unique problems resulting from the arctic location. Studies conclude that it is feasible to transport gas on a year-round basis from the arctic to the Canadian east coast.

Introduction

The Arctic Pilot Project proposes to transport 250 MMscf/D (7 x 10(6) m3/d) of gas from Melville Island in the Canadian arctic to markets in eastern Canada. The gas will be pipelined from the Drake Point gas field to Bridport Inlet on the south coast Point gas field to Bridport Inlet on the south coast of Melville Island, where it will be liquefied and loaded on ice-breaking LNG carriers for transportation to a regasification terminal in eastern Canada. The economical and environmentally sound transportation of gas from the arctic revolves around the answers to two important and basic questions. 1. Can the Melville Island facilities be built on an economical and environmentally sound basis given that the location could be expected to result in conventional facilities that would cost at least five times that of facilities built in settled areas? 2. Can large ice-breaking LNG carriers operate year round in the arctic waters leading to Bridport Inlet? Petro-Canada, The Alberta Gas Trunk Line Co. Ltd. (AGTL), and Melville Shipping Ltd. have spent more than $11 million and 2 years finding the answers to these two questions and have concluded that the project is feasible, that the capital cost will be about $1 billion, and that the gas will be delivered to southern markets at a competitive price.

Melville Island Facilities

These facilities include the gas transmission line across Melville Island, the floating LNG plant and storage, and the Bridport shipping terminal. The lack of site specific information, which increases uncertainties in scope definition, and the high cost of on-site labor result in (1) arctic construction costs (using conventional methods) that are at least five times the costs in settled areas; and (2) a high degree of uncertainty in estimating final cost. The cost of on-site labor for this project will be minimized by building facilities to the greatest extent possible in settled areas. This approach minimizes the possible in settled areas. This approach minimizes the environmental and socioeconomic impact on the arctic.

Gas Transmission

The proposed gas transmission line is a 95-mile (160-km), 22-in. (560-mm) buried chilled gas line. This size line has a calculated capacity of 336 MMscf/D (9.54 x 10(6) m3/d) at the design inlet and outlet pressures of 1,200 psig (8268 kPa) and 900 psig (6200 pressures of 1,200 psig (8268 kPa) and 900 psig (6200 kPa). The cost estimate was prepared by AGTL, assisted by Canuck Engineering Ltd. The costs were based on proved construction techniques such as those used in proved construction techniques such as those used in the permafrost sections of the Aleyeska pipeline. The estimators have assumed construction only in the months of April, May, September, and October.

JPT

P. 351