Enstar and HEX Embroiled in Gas Supply Dispute as Winter Shortage Looms

A dispute between Enstar and Cook Inlet gas supplier HEX is raising questions about whether there will be enough natural gas to meet winter demand in Southcentral Alaska.

Enstar, which provides natural gas to residents of Anchorage and surrounding areas, initiated arbitration proceedings with HEX over a disagreement about gas supply. The utility claims that HEX sold gas to Marathon, a third-party refiner, without first offering it to Enstar as required by their contractual agreement.

The discretionary gas at issue is crucial for replenishing storage in Cook Inlet during the winter months when demand increases sharply. Enstar says that without this gas, they will be 3 billion cubic feet short for the upcoming winter, equivalent to 18 days of supply. This shortage could lead to higher costs, rolling blackouts, and conservation measures.

HEX has denied any wrongdoing, arguing that Enstar is misinterpreting the contractual language. The company claims it can legally sell discretionary gas to Marathon at a higher price than agreed upon with Enstar.