HEX Dispute Raises Questions About Winter Natural Gas Shortage in Southcentral Alaska

The natural gas company for Southcentral Alaska, Enstar, has initiated arbitration proceedings with Cook Inlet gas supplier HEX Operating over a dispute about gas supply that raises questions about a winter shortage.

According to paperwork filed with the Regulatory Commission of Alaska on Tuesday, Enstar and its affiliate, Alaska Pipeline Company, argue that HEX has sold gas to a third party without first offering it to Enstar, violating contractual arrangements.

The utility says that the 'discretionary gas' is vital for helping refill gas storage in Cook Inlet in time for winter when demand for gas sharply increases as residents use more energy.

HEX has denied that it's violating the gas-supply deals between the two parties and argues that Enstar is misreading contractual language, according to correspondence in the filing.