Could we consider a rail line to the North Slope to access our Arctic gas?
Furie Operating Alaska’s Julius R Platform, installed in 2015 in Cook Inlet. Furie had production shortfalls through the winter and didn't meet its contracted supply agreements with Enstar Natural Gas Co. and the Homer Electric Association.
Most expert energy analysts agree that the remaining supplies of gas in Cook Inlet are inadequate to meet future Railbelt demands, in communities from Southcentral Alaska to Fairbanks. The cost of exploring for and producing additional reserves to replace the collapsing production will become increasingly uneconomic. They tell us new sources of energy must be developed to avoid disruptions and any delay in making choices is no longer an option.
Several governors have looked at AK LNG, a large-diameter, $40 billion-plus pipeline from the North Slope to Kenai. So far, large corporations like Exxon, ConocoPhillips and Hilcorp have declined to invest in the concept, indicating the risk is too high under their strategic forecasting scenarios of global LNG supply and demand.
Another option appears to be available to us: Importing LNG from foreign sources. Mexico and Canada have gas that could potentially be available to Alaskans, but we would need to commit to investing in expensive import infrastructure that will significantly increase the cost of energy in the State while offering no long-term solution.
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