Construction of Cook Inlet subsea pipeline now set to begin in 2015

Sponsors of the proposed Trans-Foreland Pipeline originally talked of starting construction in 2014.

Now it appears construction will wait a year.

The project involves laying a subsea pipeline across the inlet. The line would carry crude from oil fields on the inlet’s west side to Tesoro’s Nikiski refinery on the east side.

Cook Inlet Energy LLC, an Anchorage-based oil producer, pioneered the pipeline concept and is working with Tesoro, which has taken the lead on the project. Cook Inlet Energy is a subsidiary of publicly traded, Tennessee-based Miller Energy Resources Inc.

At Miller’s annual shareholders meeting on April 16, Miller executives said Tesoro is “expected to commence construction in 2015” on the Trans-Foreland Pipeline.

The pipeline, 8 inches in diameter, would stretch a total of 29 miles, with the underwater segment running 22 miles. The estimated project cost is $50 million.

Tesoro is seeking a right of way from the Alaska Department of Natural Resources to lay the pipe across state submerged lands.

Cook Inlet Energy and Tesoro believe the subsea line could offer reliability and cost advantages to the current oil transportation system, which utilizes tankers to carry westside crude.

—Wesley Loy