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Preparing for a winter fuel emergency

Preparing for a winter fuel emergency. Alaska Journal of Commerce Alaska State Chamber of Commerce. The Challenge:. The Response:.

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Preparing for a winter fuel emergency

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  1. Preparing for a winter fuel emergency • Alaska Journal of Commerce • Alaska State Chamber of Commerce

  2. The Challenge: The Response: Cook Inlet gas producing wells have declined to the point that, in the event of an equipment malfunction, there could be an emergency shortage of natural gas during a cold snap. The Municipality of Anchorage, Chugach Electric Assoc., Municipal Light & Power and Enstar Natural Gas are working together on a coordinated emergency response plan.

  3. The Longer-Term Challenge: • Annual production of gas may fall below requirements by 2013 to 2018 • The future of the Kenai LNG plant, which now serves as a gas supply backstop to regional utilities in winter, is uncertain after 2011 • Marathon Oil Co. and Chevron Corp. have installed gas storage facilities and Enstar is studying establishment of gas storage for its customers • Geologists believe Cook Inlet is under-explored for oil and gas, but high costs and limits to the local market impede new exploration. Permit requirements on federal land are extensive. • The state of Alaska and the Alaska Natural Gas Development Authority are studying a bullet pipeline from the North Slope or a spur pipeline off a larger gas pipeline, if it is built. These are long-term solutions.

  4. Cook Inlet Natural Gas Production • 1958-2026 Current Actual 88 BCF/yr DNR est Utility Demand 2006

  5. Cook Inlet Peak Day Comparison

  6. Daily Gas Peak Requirements & Potential Curtailments Daily Demand (mmcf/d) Curtailment (mmcf/d) Utility % Curtailment ~75% ~75% ~10% ML&P Chugach Enstar 38,000 95,000 270,000 ~28,000 ~70,000 ~27,000 Total: 403,000 ~31% ~125,000

  7. What’s the Problem? • Supply Gap in the Near Future • Largely Under-explored Region • Minimal Rig Count

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