Fri Feb 07 19:40:00 UTC 2025: ## Two Companies Vie to Import Natural Gas to Southcentral Alaska, Addressing Looming Shortage

**Anchorage, AK** – Southcentral Alaska faces a looming natural gas shortage, prompting two competing proposals to import liquefied natural gas (LNG) and alleviate the crisis. Harvest Alaska, an affiliate of Hilcorp Alaska, announced plans Thursday to convert a mothballed LNG export facility in Nikiski into an import terminal, aiming for initial gas reception by 2026 and full operation by 2028. This project has already secured a crucial federal permit. Chugach Electric Association, the state’s largest electric utility, is negotiating to purchase gas from this facility, citing it as a crucial near-term solution to meet their 2028 supply deadline.

Separately, Enstar Natural Gas, Southcentral Alaska’s natural gas utility, is pursuing its own LNG import facility in Nikiski, partnering with New York-based Glenfarne. Their project targets initial gas imports in 2029, although Enstar acknowledges this timeline is subject to change.

The competing proposals highlight the urgency of the situation. Hilcorp, the region’s largest gas producer, has warned of its inability to meet future demand beyond existing contracts. This potential shortfall could significantly impact power prices and the operation of key industries, including Marathon’s Kenai refinery.

While some see the competition as beneficial, others express concern about potential monopolies. Senators Giessel and Wielechowski, who previously urged a Federal Trade Commission investigation into Hilcorp’s dominance, worry about Hilcorp’s potential control over the entire gas supply chain, from import to production to storage.

Industry analysts, like Larry Persily, suggest Harvest Alaska’s repurposing of the existing facility presents a more cost-effective solution, leveraging pre-existing infrastructure and federal approvals. However, the Kenai Peninsula Borough Mayor, Peter Micciche, believes it’s unlikely both import terminals will be built, anticipating one project will ultimately prove more economically viable. The Regulatory Commission of Alaska will play a key role in regulating contracts and overseeing the projects. The final outcome remains uncertain, but the dual proposals signify a significant step in addressing Southcentral Alaska’s critical natural gas supply needs.

Read More