Enstar Seeks Review of RCA Decision on Natural Gas Storage Project

Enstar, Southcentral Alaska's largest natural gas utility, has filed a petition to appeal the Regulatory Commission of Alaska (RCA) decision on its proposed project to expand natural gas storage. The project, known as the Kenai Loop Pool, aims to develop and operate a depleted reservoir in Kenai to store natural gas supplies during the colder months.

According to Enstar president John Sims, the utility has been working on this project for over a year and believes that the reservoir is 'almost perfect' for meeting both short-term and long-term needs. The project's estimated price tag of $240 million would be the largest single capital investment in the utility's history.

The RCA denied Enstar's request earlier this month, citing insufficient information provided by the utility. In its 31-page petition, Enstar argued that the commission's decision was 'erroneous and suffers from a lack of true understanding of the nature of the problem.'

Sims expressed concern about gas supply in general, stating that there is 'a lot of planning going on for this upcoming winter about what happens if we have a gas supply issue.' The utility has to secure more gas storage to meet the needs of its over 150,000 Southcentral customers.

The project has support from various stakeholders, including the Alaska Department of Natural Resources and several regional electric utilities. If Enstar doesn't receive RCA approval, it won't be able to support LNG imports or a pipeline from the North Slope, which could increase prices for households and businesses.