Meeting Minutes

November 26, 2001

A meeting of the Northern Alaska ASME Group was held on October 23, 2001 in the Embassy Room of the Regency Hotel in Fairbanks, Alaska. The meeting was called to order by the Vice Chair, Paul Marko, at 12:05. Attendees order lunch and meeting business and the presentation began at 12:20.

Meeting attendance consisted of 15 members and guests (see sign-in roster on file for details).

Meeting Business:

Minutes of the September 25^th meeting were reviewed.

The Group Web site is in the process of going on-line. There are still some problems with the ASME Host provider that hopefully will be corrected soon. The URL for the Group Web site is www.asme.org/sections/northernak.

Dr. Das Encouraged all present who are not members to consider joining ASME. He also asked all members to talk to colleagues who are not members of ASME and encourage them to join.

The speaker for the meeting was Dr. Godwin Chukwu, head of the Petroleum Engineering Department at the University of Alaska Fairbanks. His presentation was an overview of the research on-going at UAF concerning the transportation of gas-to-liquids (GTL) product through the Trans-Alaska Pipeline System (TAPS).

The University of Alaska Fairbanks has been performing research on the transportation of GTL products from the Alaskan North Slope (ANS) oil fields through TAPS for the past three years. The funding for this research has just been extended for another three year period. Research is sponsored by the U.S. DOE and research is being assisted/coordinated with Alyeska Pipeline Service Company and other outside consultants.

It is estimated that there are 38 TCF (trillion cubic feet) of conventional natural gas reserves on the north slope. 29 TCF at Prudhoe Bay and 8 TCF at Point Thompson. It is also estimated that there are 31 TCF available from ANWR, 590 TCF of gas available from gas hydrates on the north slope, and an undetermined quantity of gas available from coal bed methane.

Presently gas resources on the north slope are used for re-injection to enhance oil recovery, local power production, and local gas sales to consumers. This consumption does not utilize the ‘true value’ of the gas if it could be transported to the larger ‘world’ market.

There are several alternatives under study to transport north slope gas to a larger market. These include: a gas pipeline within Alaska and then liquification (LNG) for tanker shipment; a gas pipeline to final market; and conversion on the slope to a GTL product and shipment of this product to market via TAPS.

The research discussed by Dr. Chukwu is the technology and problems involved in shipping GTL product using TAPS. Other research also underway at this time is the technology of creating the GTL products on the slope.

One possible method of utilizing TAPS to transport GTL is the batch approach. In this method, alternate ‘slugs’ of GTL and crude oil are shipped down the pipeline. Problems under research are the mixing that occurs at the slug interface; how to understand and limit the mixing and how to deal with the mixed product that results.

A second approach is to transport slugs of GTL and crude oil in TAPS separated by ‘pigs’ to eliminate/limit mixing.

Another approach to using TAPS is to transport a mixed product consisting of GTL and crude oil. Research in this area deals with how to utilize and/or separate the products after shipment for market use.

UAF’s research in these areas includes experimental approaches, flow modeling, and economic analysis of the many scenarios.

The economics of GTL also include some end-market considerations. Eventually the GTL needs to be refined back into gas and other light liquids for use.

All business being completed and the presentation finished, the meeting was brought to a close at 13:10.

The next meeting is scheduled for November 26, 2001.

Respectfully Submitted,

H. Ed Bargar, P.E.

Secretary, Northern Alaska ASME Group