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Natural gas supplies ‘not looking good’ for Southcentral Alaska this winter, Enstar says
Enstar said it may need customers to conserve gas if it cannot secure more storage or imports, and the project could raise bills by $10 to $12 a month.
On Tuesday, Southcentral Alaska's largest natural gas utility, Enstar, warned it may lack sufficient gas for the coming winter. This follows the Regulatory Commission of Alaska's denial last Wednesday of Enstar's proposal to expand natural gas storage in Kenai.
In denying the request, the commission cited uncertainty regarding the project's timing and noted the Department of Natural Resources had not confirmed the facility's storage capabilities. Additionally, Hilcorp submitted a competing application for the Kenai Loop Pool.
The proposed $240 million project would have held 25 billion cubic feet of gas to ensure supply reliability. According to the filing, the infrastructure would have increased monthly customer bills by $10 to $12.
"Not looking good," Enstar President John Sims said regarding the winter outlook for more than 150,000 Southcentral customers. Sims emphasized the urgent need for additional production and noted the utility is searching for other, more expensive storage options.
The utility plans to file a petition for reconsideration next week. While regional providers explore long-term natural gas imports, such a move would impose unavoidable price increases on thousands of households and businesses across the region.