Enstar Appeals Denial of Natural Gas Storage Project in Southcentral Alaska

Enstar, Southcentral Alaska's largest natural gas utility, has appealed to the Regulatory Commission of Alaska (RCA) after their decision to deny a project that would have expanded natural gas storage. The project, known as the Kenai Loop Pool, involves developing and operating a depleted reservoir in Kenai currently leased and operated by AIX Energy, LLC.

The utility needs more gas storage to meet the needs of its over 150,000 customers, and the petition states that this becomes 'critical' starting next year. Enstar president John Sims said they've been working on this project for over a year and claimed that the reservoir is 'almost perfect' for meeting both short-term and long-term needs.

The estimated price tag for the project is $240 million, which would be the largest single capital investment in Enstar's history. Utilities are looking to import natural gas in the coming years, which would increase prices for thousands of households and businesses. If Enstar doesn't receive RCA approval, they won't be able to support LNG imports or a pipeline from the North Slope.