Cook Inlet Gas Supply
As John Sims describes the results of the Phase 1 Assessment, “the work we are doing now represents a 'generational shift' in Cook Inlet’s energy landscape. Our goal is to ensure customers never worry about a gas shortage, and that we have a plan in place to meet these needs into the next generation. This confirms what we already know about Cook Inlet: this is an aging basin and we need a solution now in order to continue to serve our customers when ENSTAR’s contracts with Hilcorp expire in 2033. This assessment is centered on accessing reliable and timely gas delivery, not just for ENSTAR’s 150,000 customers, but for Railbelt electric utilities who rely on natural gas to generate electricity in Southcentral and the Interior."
Frequently Asked Questions
Q. What is the current status of natural gas in Cook Inlet?
In April of 2022 Hilcorp, Cook Inlet's largest natural gas producer, announced it did not have "line of sight" to produce gas beyond its existing contracts. This effectively put ENSTAR and local electric utilities on notice that it was time to look for an alternate supply of natural gas. While ENSTAR has much of its gas needs contracted with Hilcorp until 2033, electric utility contracts with Hilcorp begin to expire in 2028. All utilities will start seeing gaps in their gas supply portfolios beginning that same year.
Q. What is ENSTAR doing to help develop a long-term strategy for Cook Inlet gas supply?
ENSTAR is taking a proactive approach in communicating the challenges of securing a long-term natural gas supply for Southcentral Alaska, which is why you may have been hearing so much about this topic lately. Following Hilcorp’s announcement, the Railbelt utilities formed the Utility Working Group, with advisory support from the Department of Natural Resources and the Alaska Energy Authority. Through this group, ENSTAR commissioned Berkeley Research Group to identify and implement alternatives to replace declining Cook Inlet gas.
Q. Should I be worried about running out of gas?
No. The majority of ENSTAR's gas supply needs are met until 2033 and ENSTAR continues to engage and negotiate with Cook Inlet producers as part of a near-term solution. ENSTAR has sufficient time to implement alternative gas supply options.
Q. I'm building a new house, should I still install natural gas?
Natural gas remains the most efficient, affordable, and economic heating solution for Southcentral Alaska. Additionally, natural gas is used to generate more than 80% of electricity in Anchorage, Mat-Su, and the Kenai Peninsula. ENSTAR is committed to providing reliable energy service to Alaskans both in the near and long term.
Q. What can I do about this?
Practicing energy conservation is always a good idea. Simple things like keeping your gas appliances maintained and in peak performance and turning down the temperature on your hot water can make a big difference in the long run. Visit our Energy Conservation page for more ideas.
Q. How will this affect my bill?
While there are no immediate impacts to customers' bills, ENSTAR does anticipate gas costs to increase. Any changes to ENSTAR's fees and charges must be approved by the Regulatory Commission of Alaska. This includes the Gas Cost Adjustment which covers the cost of the gas you use.
