Most options outlined in the report will come at a higher price tag than what utilities get for Cook Inlet gas today. But with the sun setting on the basin’s gas producing lifespan, they won’t have much choice as they look for new ways to meet demand.
term picture for utilities, since she thinks Alaska could import liquified natural gas at a reasonable price from the world market.Wilcox said utilities will need to find new sources of gas from a mix of places.
This table, included in BCG’s report, outlines possible options to fill the gas gap. “Kenai LNG” refers to a plan to use the LNG export facility in Kenai as an import facility, to ship LNG in for use on the Railbelt. At $4.4 per mcf, the cheapest gas option outlined in the report would come from the big Alaska Liquified Natural Gas export project — which would ship gas down from the North Slope for use in state and export overseas.
“And if the state is going to be subsidizing energy, I think it makes less sense to subsidize projects that prolong our dependence on gas instead of energy projects that make us less dependent on gas, more energy independent with a more diverse grid,” he said.
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