But Enstar’s president warned of risks as some of the gas supply will depend on future drilling.
Pipes lead to cooling fans, at right, at the Cook Inlet Natural Gas Storage Alaska facility on Monday, July 1, 2024 in Kenai. The facility takes natural gas from producers, including Hilcorp, and stores the gas underground in a depleted gas field until it is needed by its customers, which include Enstar and Chugach Electric.
Mark Slaughter, Furie’s chief commercial officer, said in an interview on Monday that some additional drilling at the Kitchen Lights Unit needs to be conducted to provide the full volumes of gas for each year of the contract.“We’re an Alaskan-owned company and it’s important that Alaskans fix this problem,” he said.
The lower rate will remain in place until the Kitchen Lights Unit reaches $712 million in gross revenues, after a period that would start retroactively on Sept. 1, according to the 37-page preliminary determination, signed by Natural Resources Commissioner John Boyle. The royalty reduction could extend the life of the field by at least 10.5 years, according to a scenario modeled by the state.
“Maintaining a stable Cook Inlet gas supply is in the state of Alaska’s best interest,” the preliminary determination says. “DNR has a mandate to assure local gas can continue to be produced. By granting royalty relief … it will make more economic to maintain production, develop and increase local gas production.”
Alaskans got an idea of the potential problems during a severe cold snap last winter, when equipment at an underground gas storage reservoir in Cook Inlet to produce gas as expected. If the situation had worsened, Southcentral residents would have been asked toreduce energy use.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Much of Southcentral Alaska is in for weekend winter snowstormA slow-moving storm could bring several inches of new snow to the Anchorage area as well as the Mat-Su and parts of the Kenai Peninsula.
Read more »
Gusty Gap Winds and Arctic Chills Set to Hit Southcentral AlaskaStrong winds and colder weather are expected to develop through the end of the week in Southcentral Alaska, with temperatures dropping to winter lows and gusts reaching up to 50 mph in some areas. The region will see dry conditions, continuing a snow drought in Anchorage.
Read more »
Light Ice Accumulation and Freezing Rain Expected in Southcentral AlaskaA warm air mass is causing ice accumulation and freezing rain across Southcentral Alaska, with up to a glace of ice possible. Winter weather advisories are in place for several areas, including Thompson Pass, where up to 10 inches of snow is expected. The main concern is for very slick roads.
Read more »
Alaska included among states with highest Alaska Native and Native American absencesAlaska Native students are more likely to drop out of school and have the lowest attendance rates above all subgroups except homeless students in Alaska, according to new data.
Read more »
Alaska development agency moves to provide $50M commitment to support Alaska LNG projectThe Alaska Industrial Development and Export Authority’s commitment could allow a pipeline developer to complete up to $50 million in engineering studies in hopes that an initial in-state gas line is built.
Read more »
Percentage of Alaska high schoolers texting while driving jumps to a new highLast year over 40% of high school drivers reported that they texted or emailed while on the road.
Read more »