Alaska's Gas Gamble: Why a Pipeline Dream Might Not Heat Homes
The Reality of the Pipeline Dream
Alaska's hope for a massive North Slope natural gas pipeline is more of a holiday wish than a realistic plan. Many in Southcentral Alaska are pinning their hopes on this project to lower heating and electricity costs. But the truth is, this pipeline is too expensive and too risky.
- The world has plenty of cheaper gas options.
- The project lacks solid customer contracts and investor commitments.
The Immediate Need for Gas
The idea of a pipeline bringing North Slope gas to Southcentral Alaska is exciting, but it's not the immediate solution. Southcentral utilities might face gas shortages by the end of the decade as Cook Inlet production declines. This means they need to find a quick and affordable solution, not wait for a pipeline that might never come.
A Practical Solution: Repurposing the Nikiski Terminal
One practical solution is to repurpose an existing gas export terminal in Nikiski into an import hub. Chugach Electric Association is already negotiating with Harvest Midstream to make this happen.
- Low-cost
- Low-risk
- Federal approval
This plan is a smart way to ensure that Alaska's population center stays warm and well-lit without waiting for a pipeline.
Glenfarne's Alternative Plan
However, the company behind the North Slope pipeline, Glenfarne, has a different idea. They want to build a new gas import terminal, which would:
- Cost hundreds of millions of dollars
- Take years to complete
- Lack federal approval
- Be far from certain
Building an entirely new facility for a small customer base is wasteful, especially when there's a cheaper and faster option available.
Making the Right Choice
Alaska has made many poor energy decisions in the past. The utilities need to make the right choice this time. They should focus on the:
- Lowest-cost
- Fastest-to-develop
- Most certain option
Repurposing the existing export plant into an import terminal is the smartest move.
