Alaska regulators back Enstar’s plan to build $57m pipeline to import natural gas

By Andrew Blackman July 25, 2024
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Blue flame from a gas burner on a gas cooker. Source: Alamy/Reuters.

Alaska regulators have approved a request by Southcentral Alaska’s natural gas utility to build a pipeline for potential natural gas imports, Anchorage Daily News reports. The pipeline will extend 16 miles to Port MacKenzie located in Upper Cook Inlet.

  • The $57 million pipeline extension is a precautionary measure to address a potential gas shortage starting next year. Enstar Natural Gas experts local gas supply to be hurt by declining production in the Cook Inlet.
  • The Regulatory Commission of Alaska supports this move to diversify natural gas supplies based on warnings from Hilcorp and other stakeholders about the looming shortfall.
  • Alaska needs to import gas to address a stagnation in local production. The state is trying to pursue renewable power projects to alleviate the problem.
  • Enstar aims to start building a pipeline next summer. The process involves assessing Port MacKenzie as a suitable site for LNG reception and securing the necessary state and federal permits.