Alaska Resource Review Fall 2024

www.AKRDC.org 39 Drive production and shrink operating costs when you choose Inlet Energy as your fuel and lubricants provider. We empower miners through our team’s unmatched expertise, extensive product inventory and dependable delivery capabilities. SERVING ALASKA’S MINING INDUSTRY FOR OVER 35 YEARS Contact us to discuss your company’s needs (907) 274-3835 or order@inletenergy.com — JUNEAU, ALASKA — AVAILABLE STATEWIDE operations@coastalhelicopters.com 907-789-5600 www.coastalhelicopters.com ✓ CONSTRUCTION ✓ EXPLORATION ✓ CONTRACT ✓ SUPPORT ✓ CHARTER the company made extra gas available from storage last winter to help Enstar. The problem last year was resolved, but it focused attention on the larger issue of a shortfall in the overall gas supply. Enstar may feel the first of that in 2025, but it will become more prominent in 2027 as overall gas production in the Inlet falls short of demand, state Division of Oil and Gas officials have said. The shortfall will increase by 2030 and beyond. Regulated utilities are required to show they have resources on hand to meet consumers’ requirements. As a fallback Enstar and the two regional electric cooperatives, Chugach Electric and Matanuska Electric Association, are working on a plan to import liquefied natural gas, or LNG. Enstar has said it will have an LNG supply source under contract by January, but the LNG couldn’t be delivered until 2029 or later. There will be an extra cost to this, also. Enstar’s Alaska CEO John Sims also said the price of imported LNG could be about twice the approximate $8 per million cubic feet now paid in Southcentral, although this would be for only the incremental supply needed. There are also regulatory issues with any LNG import plan, and these will take time to resolve. The Regulatory Commission of Alaska must approve LNG purchases and the price as well as any capital investments needed to manage the liquefied gas.

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