ANCHORAGE, AK – Alyeska Pipeline Service Company has received approval from the Owners of the Trans Alaska Pipeline System (TAPS) to invest over $250 million dollars in a project to upgrade the pipeline’s pump stations. This project is one of the most significant investments since the construction of TAPS and will install electrically driven crude oil pumps at four critical pump stations, combined with increased automation and upgraded control systems.

The goal of the project is to extend the economic life of the pipeline through increased efficiencies, while maintaining safety, integrity, and environmental performance standards. The project will position TAPS well into the future with systems that are proven in the pipeline industry. This use of modern technology and automation will maintain current pipeline reliability at a lower cost. It is estimated that the project could reduce the cost of operating the pipeline by approximately 10 percent annually and eliminate maintenance costs for equipment and facilities that will no longer be required.

The reconfigured Pump Stations 1, 3, 4, and 9 will be controlled and operated remotely through state-of-the-art systems. The newly manufactured pump station units will be modular and scalable to more easily accommodate changes in pipeline throughput. The new configuration will be capable of supporting current and projected oil flow rates and can be modified in about 24 months to accommodate significant increases in throughput – long before new fields can be developed.

This project will enhance maintenance and oil spill response effectiveness by changing from the current pump station deployment to deployment from regional response centers. It will establish maintenance and spill response centers and field offices. Some will be located near pump stations and others will be located in pipeline corridor communities. Regional response centers include Pump Station 1, Pump Station 4 (Galbraith), Pump Station 5 (Prospect), Fairbanks, Glennallen, and Valdez. Field offices include the Yukon River and Delta Junction.

The project received regulatory approval to change the pipeline spill contingency plan for reconfiguration at the end of December, 2003. The Oil Spill Contingency Plan (OSCP) amendments maintain response capabilities using the regional response bases and additional pre-deployed equipment. Although the total number of staff in the field will be reduced, the number of initial responders will not change.

The new remotely controlled and operated pump stations will reduce workload requirements in many field positions and among support functions in Anchorage and Fairbanks. Over the next 2-3 years, this will result in approximately 350 job reductions in the current Alyeska workforce of approximately 1600, including contractors. The employment impact will be roughly split between Alyeska and contract employees. Alyeska is implementing a comprehensive plan to address the needs of the TAPS workforce and to prepare employees for the changes of pipeline reconfiguration as they occur. The changes to the system will not happen all at once and the project is scheduled for completion by the end of 2005.

The next step in the project will be conducting detailed engineering and ordering long-lead materials. The project, called pipeline reconfiguration, is a major component of several change efforts underway at Alyeska. Long-term, the reduction in TAPS transportation costs could create opportunities by improving the economics of current and future oil development on the North Slope.

Alyeska Pipeline Service Company was created to construct, operate, and maintain TAPS for the Owner companies. The TAPS Owners are BP Pipelines (Alaska), ConocoPhillips Transportation Alaska, ExxonMobil Pipeline Company, Williams Alaska Pipeline Company, and Unocal Pipeline Company.

Download Pipeline Reconfiguration Project Overview