Bullet Line
The bullet line option, proposes construction of a 24-inch, high pressure natural gas pipeline which would run 800 miles parallel to the existing TransAlaska Pipeline from Prudhoe Bay in order to supply gas to Interior Alaska. From there this line would follow the Parks Highway to the Cook Inlet area, where the line would connect with the existing distribution system. The current work is focused on the shortest route through the Minto Flats to the Nenana area with a lateral line to Fairbanks. At the Governor’s request, the new project management, Alaska Gasline Development Corporation (AGDC), will be analyzing the route selection to ensure all Alaskans along the route have access to the gas they need to meet future demand at the lowest possible cost.
Quick Facts
Project length:
737 miles
Pending project cost*:
$5.7 to $11.8 billion
*(Pending further engineering)
Diameter:
24 inch
Volume:
Undetermined
This option includes the construction of a gas treatment plant on the North Slope at Prudhoe Bay to condition raw natural gas for shipment. Capacity of the North Slope gas treatment plant and the associated pipeline is dependent upon the volume of gas shipped. Market analysis is vital to determine the initial and potential expansion capacities necessary to meet customer demand and minimize consumer costs.
The estimated potential project cost for the bullet line option is between $5.7 to $11.8 billion, depending on future volumes transported and further detailed engineering.
State efforts on a bullet line were initiated in 2009 when the State secured funds to take over the preliminary engineering and design work begun by the ENSTAR Natural Gas Company. As work on this effort continued in the spring of 2010, the Legislature took steps to form a new corporation within the Alaska Housing Finance Corporation (AHFC) to oversee this effort. As a result, the Alaska Gasline Development Corporation (AGDC) was formed. Preliminary construction cost and tariff data were delivered to AGDC on July 1, 2010. AGDC is now charged with putting together a development and implementation plan to present to the Legislature by July, 2011.
A small diameter bullet line will make natural gas accessible to Alaskan consumers and businesses interested in value added processing. Currently, the AGDC is exploring ways to overcome the challenges of developing and operating a pipeline with lower volume. If successful, this project will result in job opportunities during construction and future revenue to keep Alaska healthy; including road maintenance and school funding.