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<br />~ Financing sotigW .forcoal/C02
<br />~~Wyoming.W. Coast slurry line
<br />
<br />.-i ....
<br />c.) .
<br />C) Backers of a proposed carbon diox-
<br />ide/coal slurry pipeline from Wyo-
<br />ming to California are seeking equity
<br />financing from users and other
<br />sources.
<br />The complex project, costing $1.16
<br />billion in 1984 dollars, also would
<br />involve a CO2 pipeline across Wyo-
<br />ming. Start.up is scheduled for De-
<br />cember 1989, and lifespan is project-
<br />ed at 25 years.
<br />'Project manager is Western Re-
<br />source Transport, a subsidiary of
<br />Aquatrain Inc., Tulsa.
<br />Executives of Aquatrain are mainly
<br />former principals arid executives of
<br />Resource Sciences Corp. and Wil-
<br />liams Bros. Engineering Co., also of
<br />Tulsa. They include David R. Wil-
<br />liamsJr., Morgan A. Greenwood, Bart
<br />H. Johnson, Curtis L. Jacobs, Henry ).
<br />Brolick, Raymond C. T. Ray, and Jack
<br />D. Tennant..
<br />As presently proposed, the pipeline
<br />would transport puiverized coal from
<br />the Powder River basin in a liquid
<br />C02 slurry to Long Beach, Calif. After
<br />depressurization, separation, and dry.
<br />.ing, the coal would be exported to
<br />Pacific Rim countries and the CO,
<br />recompressed for delivery to Los An-
<br />geles basin oil fields for enhanced oil
<br />recovery .
<br />. Several of the principals acquired
<br />Aquatrain from W.R. Grace & Co.
<br />Grace' initially had planned to ship
<br />coal and salt water from Rock Springs,
<br />Wyo., to Long Beach via Colorado,
<br />Utah, Nevada, and Arizona, but the
<br />process proved technically infeasible
<br />in laboratory tests (OCJ, Sept. 19,
<br />1983. p. 80).
<br />Project plans. Present plans call fOr
<br />construction of a 1,180 mile, 26 in.
<br />pipeline from Gillette, Wyo., to Long
<br />Beach, Calif.
<br />The proposed route runs southwest
<br />from Gillette to. the 'southwest corner
<br />of Wyoming, diagonally across Utah
<br />following the proposed Rocky Moun-
<br />tain Pipeline Project corridor, south-
<br />west past Las Vegas, Nev., and then
<br />west along designated utility corridors
<br />and the route of the proposed Pactex
<br />west-east oil pipeline project.
<br />The route covers 650 miles of feder-
<br />al land, 35 miles of state land, and
<br />495 miles of private land. .
<br />Initial capacity would be 10 million
<br />tons/year of coal and 156 MMsdd of
<br />CO2 with 11 pump stations rated at a
<br />combined 53,000 hp. Pump stations
<br />would be boosted to 84,000 hp to
<br />handle 15 million tons/year of coal
<br />
<br />.~ "':'
<br />
<br />_uatrain
<br />
<br />route
<br />
<br />
<br />I m mllel Dlli"
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<br />
<br />and 233 MMscfd of CO, by 1995.
<br />CO, available for sale at Long
<br />Beach would be '140 MMsdd at initial
<br />capacity and 210 MMsdd at full, ca-.
<br />pacity.
<br />. CO, source is expected to be the
<br />deep Riley Ridge sour gas fiela near
<br />LaBarge, Wyo., where CO, reserves
<br />are estimated conservatively at 11.7
<br />trillion cu ft. ContactS indicate CO,
<br />could be purchased for 85~ to $1/
<br />Md, according to Western Resource
<br />Transport. .
<br />A 377 mile; 16 in; pipeline would
<br />be required to transport CO, to Gil-
<br />lette, and any exCess CO, could be
<br />Sold for enhanced oil recovery in
<br />Powder River basi n fields. '
<br />Other requirements in Wyoming
<br />would include a truck, conveyor, or
<br />pipeline coal gathering system, equip-
<br />ment to reduce coal moisture content
<br />to 10% and raise. heating value to
<br />10,500 BTUllb, crusher/pulverizers,
<br />and coal and CO2 storage and blend.
<br />ing systems.
<br />At Long Beach,. the project would
<br />require CO2 vaporizers, CO2/coal
<br />separators, CO2 'c1eanup and com-
<br />pression equipment, and coal storage. - ing to $9 million.
<br />Western 'Resource Transport says The 1986 requirements are $18.6
<br />the project could provide Powder Riv. million for demonstration facility con-
<br />er coal fob Long Beach cargo ships at tinuation, preliminary engineering,
<br />$30/ton or $1.435/MMBTU. completion of supply and market con.
<br />Principal coal markets lie in Japan, tracts, and additional environmental
<br />Korea, and Taiwan. impact statement and permitting
<br />Economics, hurdles. Western Re- work. Preparation of an EIS and filing
<br />source Transport says the after tax rate for state and federal permits is to start
<br />of return on the project would be in January 1985. This would allow
<br />12.4% for a $19/ton coal tariff and time for issuance of ,!n accepfed EIS
<br />100% equity funds. - during fi.rst quarter 1987.
<br />A $19/ton transport cost will result A commercial size demonstration of
<br />in coal fob Long Beach for $30/tonor- the liquid CO2 technology is required
<br />less. This, the company says, will to advance the pipeline to the opera-
<br />result in a savings of about $Mon or tianal stage. Such a demonstration
<br />20% for U.S. ccial delivered to Japan, would provide design, operation, and
<br />compared with current supplies from maintenance data.
<br />Australia or South Africa.' Included in the $1.16 billion are the
<br />A tariff of $1.50/Md of CO2 prq- demonstration facility, slarry prepara-
<br />vides incentive for EOR operators, the tion, CO2 supply pipeline, slurry pipe-
<br />company says. ,line, U.S. port coal handling/loading
<br />The $1.16 billion would fund the facili\ies, separation equipment and
<br />10 million tons/year system. An addi- CO, compression, land, project man-
<br />tional $121.8 million would be need. agement, engineering, procurement
<br />eel for expansion to 15 million tons/ and construction m~nagement, line
<br />year. fill, and 15% contingency.
<br />Funds needed during 1985 are esti- Not included are costs for a coal
<br />mated at $25.7 million, most of it gathering system at Gillette or reve-
<br />earmarked fOLthe demonstration facil- nues from Powder River basin CO2
<br />ity. Discussions in progress for an sales.
<br />interest ina demonstration facility, Operating and maintenance ex-
<br />currently being designed by SQuth- penses are estimated at $83.8 million!
<br />western Public Service Co., Amarillo, year at 10 million tons/year and $99.1
<br />Tex., may reduce 1985 required fund. million/year at 15 million tons/year.'
<br />
<br />Sept 17. 1984, 0;1 & Gas Journal 55
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