lngstoragedevelopmentplan
lngstoragedevelopmentplan
INTRODUCTION
The Fairbanks Large Storage Tank is part of the Interior Energy Project (IEP) designed to expand natural
gas distribution in Fairbanks and Interior Alaska. A tank with a capacity of 0.44 Bcf (5.25 million gallons)
is desired. A five-million-gallon tank represents a 15 fold increase compared to FNG’s current storage
capacity. The new tank is part of a program that will develop new, larger capacity production facilities,
larger tanker fleet, and expanded distribution system. The development of the production facility,
tanker fleet, and distribution system are under separate cover.
PROJECT
The Fairbanks Large Storage Tank is a project (“the Project”) to design, construct and startup storage,
truck offloading, and vaporization facilities at an existing FNG facility in south Fairbanks, Alaska. The
existing storage tanks will be decommissioned and re-purposed after startup of the new facility. New
vaporization is required to handle the planned increased volumes of gas sent out from the tank. The
new tank and vaporization equipment will be tied into the existing and expanded metering run and
distribution header.
SCOPE
Preliminary Engineering
Preliminary engineering will evaluate the tank site for permit requirements, surrounding activity and
zoning considerations, and vapor dispersion and thermal exclusion space. The vapor dispersion and
thermal exclusion space will determine the maximum size of the tank suitable for the site. Preliminary
engineering will also develop a list of qualified tank bidders, develop the contracting plan, prepare
request for proposal for tank design and erection, determine site layout, conduct geotechnical
LARGE STORAGE TANK PROJECT
investigation, determine most cost effective foundation design, and conduct the bid for tank design and
erection.
The tank, its foundation and the site preparation will be designed and erected on a lump sum turnkey
contract basis.
The bid specifications call for bidders to provide a refrigerated liquid tank suitable for storage of liquids
at -325°F or warmer at a pressure of not more than 2.0 psig in general accordance with API-620 2006
edition.
The successful bidder will design, provide materials, and construct on-site the tank and associated
appurtenances including foundation anchors, access stairs, top platforms, and maintenance lifting gear.
The successful bidder shall be responsible for testing the tank and the insulation space for leak-free
condition. The successful bidder shall also provide technical personnel to supervise the initial cool-down
of the tank with LNG provided by FNG. The initial cool-down is a critical step to ensure that metal
shrinkage is properly controlled and the tank maintains integrity.
The successful bidder shall warranty materials and workmanship for a period of two years from the date
of substantial completion. The successful bidder shall also warranty the tank rate of evaporation (“Heat
Leak”) at a rate mutually agreed to in the contract for a period of two years. Bidders are requested to
provide a design with a rate of evaporation that approaches 0.05% at 50% tank capacity at the Fairbanks
annual mean temperature of 27°F.
Site Development
Land clearing, access roads, and secondary containment dikes are required for the site. The work will be
designed under the guidance of FNG’s Owner Engineer. The work will be included in the Tank bid.
Foundation
CHI Engineering in collaboration with Alaska-based has completed geotechnical evaluations and studies
necessary to establish a baseline for designing for permafrost conditions and sealing of drawings. The
tank erector will be responsible the foundation installation.
LARGE STORAGE TANK PROJECT
Vaporization
FNG’s Owners Engineer will design the vaporization equipment. The equipment will be purchased by
FNG and installed by Alaskan contractors.
Truck offloading
FNG’s Owners Engineer will design improvements to truck-offloading to allow higher transfer rates and
more frequent deliveries. Equipment will be purchased by FNG and installed by Alaska contractors.
Send-out pumps
FNG’s Owners Engineer will develop specifications for in-tank LNG send-out pumps. The pumps will be
purchased by FNG and installed by Alaska contractors under factory supervision. The in-tank pumps are
selected for reliability and reduced operating cost. External booster pumps can be added in the future if
high-pressure delivery to future industrial users is required.
CONTRACTS
The contracting plan for development of the complete new storage site, including the tank is based on
FNG serving as the project developer, and issuing and coordinating multiple prime contracts. In this
manner, FNG can select the best value providers for portions of the scope. The contracts are:
SCHEDULE
The schedule for project development is based on the following milestones
Milestones
Budget
The total project budget is $42 MM. The AIDEA Board of directors has authorized the expenditure of up
to $1.5 MM on preliminary Engineering and FEED work necessary to finalize the project budget prior to
Final Investment Decision.