Railbelt utilities move closer to decisions on importing natural gas as legislators debate energy bills – By Sean Maguire (Anchorage Daily News) / April 6, 2024
JUNEAU — Utilities in Alaska’s Railbelt are getting closer to importing natural gas as legislators debate energy bills intended to bridge a looming shortfall of Cook Inlet gas.
Natural gas is used to generate more than 80% of the Railbelt’s heat and power. Since Hilcorp told utilities in 2022 that its contracts would not automatically be extended, utility managers have discussed importing natural gas as likely the best available alternative. Power and heating prices would be expected to increase substantially.
The Alaska Department of Natural Resources expects a Cook Inlet gas shortfall by 2027. The supply gap is expected to grow exponentially larger in subsequent years without new gas production.
