Alaska Residents Braced for Higher Gas Bills Amid Supply Shortage

Southcentral Alaska's gas supply is dwindling, and residents can expect higher home heating bills in the coming winters. Enstar, the region's primary gas utility, has announced that Cook Inlet, their main source of gas, will become less reliable due to a lack of interest from energy companies to expand production.

According to Enstar President John Sims, 'We are going to have a problem with deliverability from gas supply out of the Cook Inlet for the next couple years.' The rates consumers pay for gas and its availability will largely depend on how cold it gets this winter. If it's as cold as last year, Enstar expects 'significant challenges' and potentially rolling blackouts.

The utility is exploring an expensive solution: importing liquefied natural gas (LNG), which would cost $22 per thousand cubic feet (MCF). Currently, Enstar pays $10.80 for the same amount. Local businesses and households will be affected by these rising energy costs, with Anchorage Mayor Suzanne LaFrance warning that 'higher energy costs squeeze profits and threaten jobs.'