Press Release: SMPP(California)
is in the process of negotiating a “Memorandum of Understanding”
with a well-known gas turbine manufacturer to build 4-Skid Mounted
Turn Key 820Mw Simple + Combined-Cycle gas fired power plants to be
sea lifted to Prudhoe Bay beginning in 2018. According to SMPP
spokesperson Mike Kelly, SMPP is also preparing negotiations with the
“State of Alaska” authorities to enter into a long-term “Gas
Sales” contract, in efforts to utilize the state's share of
“Royalty” natural gas stranded in Prudhoe Bay. This “gas”
will be used to power the turbines and produce electricity that will
then be delivered to Alaskan households and commercial enterprises
throughout the interior, rail-belt and river districts. The project
also calls for erecting a delivery “Grid” with approximately
2000-miles of 230Kv transmission lines in a redundant and robust
design to provide a service factor of 100%. SMPP plans to build the
“All Alaskan Natural Gas Electrical Transmission System”
infrastructure at a cost of $8.5-Billion through the selling of
“Municipal Grade Bonds” approved by the Alaska State Legislature,
through the Alaska Rail Road Corporation. This project will finally
deliver “clean” and affordable “electricity” to the Interior,
South-central, Rail-belt, Military Installations and 13-villages
along the Yukon River under a single “Utility” authority. Several
Alaskan Native Corporation have already expressed an interest as the
receivers of such “Bonds”, as this project benefits many of the
shareholders who are today paying outrageous energy costs. The
capacity of the system will allow a majority of the household and
commercial heating needs to be generated from electric space heaters
along with electric water heaters. This is a “Green Star”
project, and will allow many of the existing polluting power plants
fired by coal to be “shut-down”. Initial start-up is scheduled
for 2019. It is estimated that the construction phase of this project
will employ well over 4600 craft and professionals and last
approximately 4-years. By using the “Bonds” as a ways and means
to fund this long awaited project, the cost to consumers spread over
the entire customer base and project lifetime is estimated today
equal to the cost factors used by the utilities in South-central,
namely CEA and MLP - which means all Alaskans on this “Grid” will
benefit. Once the infrastructure is paid-in-full, there will be a
decreasing energy cost benefit that is estimated today at 4/5ths the
existing cost of electrical energy, which should invite industry
interest and will also be a major factor on keeping the military
infrastructure here in Alaska. It is estimated that this project will
benefit 80% of the Alaskan population with affordable electrical
energy, so is by definition an “All Alaskan” project. As an added
value benefit, the heat recovered from the turbines when operated in
“Simple Cycle” will be used to “Steam Flood” the heavy oils
found in the West Sak reservoir, still undeveloped due a
characteristic stubborn viscosity. It is estimated that the West Sak
may contains 4-billion barrels of recoverable oil when subject to
“steam flooding”, and could increase the TAPS rate by 65000BPD,
or an anticipated 12% increase in throughput. This side-benefit
project will increase the construction jobs associated with pipelines
required to deliver the “steam” and allow revenue through the
selling of this commodity. It means affordable electrical energy and
will demonstrate cleaner air, especially for the “Interior” and
allow relief for many of the villages today struggling to make ends
meet with an alternative energy source and at the same time allow
stubborn oil to be “un-stranded” for delivery to TAPS and sold,
in return offering increased revenue to the state. For information
contact KCAssociates@ak.net.
Rendition of SMPP Power Plant - Prudhoe Bay, Alaska
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