ANCHORAGE, Alaska (KTUU) – Gov. Mike Dunleavy said the state will need a mix of energy sources going forward in order to keep the lights on and the heat flowing across Alaska in the coming years.
He said during a news conference Monday that he is feeling more positive than ever about the chances that a natural gas pipeline from the North Slope will be built.
Flanked by department heads and agency leaders, the governor said the state is looking into not just oil, gas and renewables, but also coal and even nuclear power as potential energy sources in the future.
Dunleavy said incoming president Donald Trump has expressed his enthusiastic support for multiple forms of energy development in Alaska.
In the near term, the state will be focused on incentivizing companies to invest in getting more gas out of Cook Inlet to power the Railbelt, Dunleavy said.
It comes after Hilcorp, a dominant player in Cook Inlet, informed utilities it might not have enough natural gas to renew contracts. There is also growing concern that limited supplies of gas may necessitate rationing, as they almost did last winter.
Department of Natural Resources Commissioner John Boyle pointed out that the easily-developable gas in the Inlet is gone, which is why incentives will be needed to get companies to invest.
Dunleavy said he is confident there is still oil and gas to be had in the inlet and the administration is working on proposals for the upcoming legislative session.
John Sims, President of Enstar Gas Company, said at the conference that there has been progress. He said Enstar has reached a five-year agreement with natural gas producer HEX/Furie to bring more Cook Inlet gas into the system beginning in 2026, but he added that gas will be more expensive than what Enstar currently pays. That contract was submitted to the Regulatory Commission of Alaska for approval, Sims said Monday.
Sims said the company is also moving forward with plans to import LNG. It’s something Dunleavy said he wished didn’t need to happen but might be necessary to bridge the gap before new energy sources are fully developed.
Dunleavy said he believes a North Slope natural gas pipeline is closer to reality than ever given an announcement from Frank Richards, president of the Alaska Gasline Development Corporation.
Richards said the company has entered into a “framework” agreement with a private company that wants to finance the massive project. Richards said the agreements are still being worked out and are confidential for now but expected to make more information public in the coming months.
The governor said there has been renewed interest in Alaska’s gas and other resources from foreign investors as well. The governor said he plans to travel to Dubai later this week for an energy conference where he can meet with potential investors firsthand and talk about opportunities that Alaska can offer.
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