South Central Utilities Preparing for Potential Gas Supply Shortage

Posted: October 29, 2012 at 12:00 pm

10/29/12

Utilities across South central Alaska are continuing to monitor natural gas supply as demand is continuing to rise. We spoke to John Sims with Enstar Natural Gas who said that this topic isn’t exactly a new one…

 

Sims: “A couple years ago, the South Central utilities commissioned the study by Petro Technical Resources of Alaska to look at what kind of activity would be required in Cook Inlet for supply to meet demand. You know what kind of activity and well, how many successful wells would need to be completed. And at that time, they found that about 13-14 wells per year would to be completed to meet demand for Cook Inlet in the long term. We asked them to do an update of that study, and what they found was basically, the activity isn’t meeting that average per year. They found in the last couple of years, there were 15 wells had been drilled. Ultimately, what that points us to, is that in the year 2014/2015 supply is not going to be able to meet demand.”

Sims said that things are being done to find a way to meet the expected shortfall

 

Sims: “Local utilities are making investments and planning on bringing in gas from outside the Cook Inlet, most likely it will be importation of CNG or LNG”

 

Sims told us that this gas would not be North Slope gas, saying that the earliest time frame for North Slope gas to be transported to South Central Alaska would be 2016-2020

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