Marathon and Unocal begin gas production from Ninilchik Unit in
Cook Inlet, Alaska
Posted: 11 September 2003
Natural Gas Flowing at 15 Million Cubic Feet Per Day Through
New Kenai Kachemak Pipeline
Marathon Oil Corporation, through its wholly owned subsidiary
Marathon Oil Company, and Unocal Corporation started natural gas
production from the Ninilchik Unit in Cook Inlet, Alaska.
The companies have commenced production at a current rate of 15
million cubic feet of gas per day (mmcfd). The gas is being transported
through the recently completed Kenai Kachemak Pipeline (KKPL), which
connects Ninilchik to the existing natural gas pipeline infrastructure
serving residential, utility and industrial markets on the Kenai
Peninsula, Anchorage and in other parts of south-central Alaska.
The Ninilchik discovery, announced in January 2002, is located
on the Kenai Peninsula approximately 35 miles south of the City
of Kenai, Alaska.
Current production is coming from two wells at the Grassim Oskolkoff
(GO) location.
Two additional wells at a second production location are expected
to come online in October.
By year end, Ninilchik production is expected to approach 40 mmcfd.
Marathon operates the Ninilchik Unit with a 60 per cent working
interest. Unocal holds the remaining 40 per cent interest.
"The successful development of the Ninilchik discovery is
an important element of Marathon's ongoing Cook Inlet natural gas
business," said John Barnes, Marathon's Alaska Asset Team Leader.
"We are also very pleased to announce the startup of the Kenai
Kachemak Pipeline that will safely and efficiently transport Ninilchik
gas to help meet the region's ongoing energy needs."
KKPL is a regulated 32-mile, 12-inch diameter gas transportation
pipeline. Construction of the pipeline began in January 2003 following
an open season in which Marathon and Unocal committed to transport
gas for a 15-year period and agency approvals were provided for
the construction permits. Marathon holds a 60 percent interest in
Kenai Kachemak Pipeline LLC, the company formed to build and operate
the pipeline. The remaining 40 percent interest is held by GUT,
LLC, a Unocal subsidiary.
"The start-up of the Ninilchik Unit and the Kenai Kachemak
Pipeline is a major milestone in Unocal's efforts to commercialize
its South Kenai gas position," said Charles Pierce, vice president,
Unocal Alaska. "We are making significant investments to grow
this business to help meet the increasing need for new sources of
natural gas in south-central Alaska."
About Marathon Oil Corporation
Marathon Oil Corporation is an energy company engaged in the worldwide
exploration, production and transportation of crude oil and natural
gas. Through its 62 percent ownership of Marathon Ashland Petroleum
LLC, the company also refines, markets and transports petroleum
products in the United States.
About Unocal Corporation
Unocal is one of the world's leading independent natural gas and
crude oil exploration and production companies. The company's principal
oil and gas operations are located in North America and in Asia.
For more information see www.marathon.com
or www.unocal.com.
Posted by Richard Price,
Editor Pipeline Magazine
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