Natural Gas The Future of Fairbanks! Prepared By: Daniel W. Britton, President / CEO

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Paul Henderson
7 years ago
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1 Natural Gas The Future of Fairbanks! Prepared By: Daniel W. Britton, President / CEO

2 the Future of Fairbanks: Pentex Alaska Natural Gas Company, LLC Who Are We? Fairbanks Natural Gas, LLC (FNG) and Polar LNG, LLC (Polar) are wholly owned by Pentex Alaska Natural Gas Company, LLC. Pentex is a privately held company with limited shareholders, with financial commitment from the Harrington Group. FNG is the local Gas Utility serving much of the Fairbanks North Star Borough. FNG is Regulated by the Regulatory Commission of Alaska. Polar is the entity developing the North Slope LNG Project

3 the Future of Fairbanks: What Do We Do? FNG transports Liquefied Natural Gas (LNG) to Fairbanks where it is temporarily stored. The LNG is then vaporized and sent to a distribution system and customers. FNG provides natural gas to over 1100 homes and businesses as fuel for heating, cooking and other such applications. FNG distributes natural gas by way of over 70 miles of mains and services within Right-of-Ways, easements and private property.

4 How s it Done? FNG purchases natural gas from Cook Inlet. Gas is tapped from a 20 transmission line that feeds the Anchorage Bowl area. LNG is made near Pt. MacKenzie and shipped to Fairbanks by truck and trailer where it is temporarily stored. The LNG is then heated, returned to a gas and distributed underground to residences and businesses around Fairbanks.

5 Fairbanks Natural Gas Pt. Mackenzie LNG Plant The liquefaction plant must first strip the Cook Inlet gas of water and CO 2. The gas is passed through a cascade cooling system of propane and ethane before taking a pressure drop and producing LNG. FNG operates around the clock during peak demand.

6 LNG Truck and Trailer Transport FNG operates 14 LNG transports to deliver LNG to 3 storage facilities Two in Fairbanks and the CIRI Talkeetna Alaskan Lodge. FNG contracts the trucking to a third party carrier. Each delivery contains about 9,000 gallons of LNG or about 750,000 cubic feet of gas. That is enough to heat 30 average Fairbanks homes in the coldest month. FNG has about 6 deliveries a day at -40 F.

7 Fairbanks Natural Gas LNG Storage and Vaporization Facility #1 The unmanned FNG facility has four LNG storage tanks capable of storing about 91,200 gallons of LNG. As demand warrants, LNG is drawn from the tanks and heated by two heat exchangers and returned to gas. Before entering the distribution system, the gas is odorized and pressure is reduced to about 45 psi.

8 Fairbanks Natural Gas LNG Storage and Vaporization Facility #2 In 2006, FNG expanded the total LNG storage capacity with the addition of two tanks at a second facility and another two tanks in The total capacity at the second site is 250,000 gallons, bringing the total of both facilities to about 340,000 gallons.

10 the Future of Fairbanks: 1997 Certificate Granted. Regulatory History: 1999 Service Area Extension Granted Exemption from Rate Regulation Granted 2007 Order Approving a Special Contract and Declining to Further Investigate Economic Regulation, and Imposing Certain Regulator Requirements Docket Opened to Investigate FNG s Exemption From Rate Regulation Order approving Stipulation entered between FNG and AG regarding Exemption From Rate Regulation. Accepted continued Economic Exemption requiring protection of residential customers finding Econmic Regulation not is Customers best interest Docket Opened to Investigate FNG s Exemption From Rate Regulation 2013 Stipulation entered between FNG, AG, FNSB to transition FNG back to a fully regulated Utility with the first Rate Case to be filed prior to June 30, 2014, based on a 2013 test year.

22 NEXT STEPS Pentex submitted a comprehensive turnkey proposal to AIDEA on January 8, 2013 Proposal includes, Gas Supply, LNG Plant, LNG & Propane Trucking, LNG Storage, Natural Gas Transmission and Distribution to majority of FNSB including North Pole with first deliveries from LNG plant in fall of 2015 FNG expanding its storage capacity to 5.25 Million Gallons by end of 2014 Arctic Energy Transport has completed the construction of two LNG fueling stations for the heavy transport market. FNG begins using CNG in its own fleet. FNG receives two new Kenworth T-800 tractors fueled by LNG in February 2013, and uses on existing route (Pt. Mackenzie to Fairbanks) Polar North Slope Project final project development milestone to be received in February 2013

23 Large Storage Project 5.25 Million Gallons

24 North Slope LNG Facility

25 Distribution Expansion Plan Fairbanks

26 Distribution Expansion Plan North Pole

27 LNG Powered Transport

28 LNG Powered Transport LNG Tank on Transport Methane Detection and LNG Fuel Monitor

29 LNG Fueling Station Fairbanks

30 Big Lake LNG Fueling Station

31 CNG Fueling Station & Trucks

32 Projected Rates for Natural Gas Customers

ACEP Lecture Series. May 21, 2013

ACEP Lecture Series. May 21, 2013 ACEP Lecture Series May 21, 2013 Interior Energy Plan: Goals Provide affordable energy to Interior Alaska customers as soon as possible After providing the Interior with natural gas, assure longterm access