Alaska regulators approve 16-mile pipeline to support dwindling natural gas supplies
(UI) – According to the Anchorage Daily News, Alaska regulators have given conditional approval to Alaska Pipeline Co., a subsidiary of Enstar Natural Gas, for a plan to build a $57 million, 16-mile pipeline to Port MacKenzie to potentially import natural gas, as local supplies in the Cook Inlet basin are projected to dwindle.
The Regulatory Commission of Alaska's decision acknowledged a forthcoming gas shortage starting next year. Hilcorp, a major Cook Inlet gas producer, has indicated it lacks sufficient reserves for new supply contracts.
Despite efforts towards renewable energy, gas imports could raise power and heating costs in Southcentral Alaska, where Enstar serves 150,000 customers and natural gas powers 80% of the region's electricity. The plan includes using specialized ships, called floating storage regasification units, to convert and transport liquefied natural gas (LNG) from overseas.
Enstar is set to begin pipeline construction next summer if imports proceed, with a gas sales agreement filing expected by year-end. However, challenges remain, including site evaluations, state and federal permits, and securing LNG and regasification ships.
This story was originally reported by the Anchorage Daily News.
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