Alaska Resource Review, Spring 2026

VOLUME 3 | ISSUE 2 | JUNE 2026

GAS FOUND IN COOK INLET, BUT LNG IMPORTS ON WAY

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Three import projects, new storage options touted to lessen impact BY TIM BRADNER THERE IS MORE GAS TO BE FOUND IN COOK INLET. INDEPENDENT COMPANY HEX ALASKA IS SHOWING THAT, ALONG WITH HILCORP ENERGY, THE REGION’S MAJOR GAS PRODUCER. Hilcorp is working with Chugach Elec- tric Association at the Beluga River gas field, where the two are partners. They are having good luck with new wells at Beluga, where the two have been drilling four to five wells yearly. Chugach is 60% owner at Beluga. Its share of new gas, which can be placed in storage, is enough to give it another year of gas supply before having to import lique- fied natural gas (LNG) to help power elec- tric generation in Alaska. HEX, meanwhile, found gas in two new wells it drilled last year from its Allegra Leigh production platform in the Kitch- en Lights offshore gas field in north Cook Inlet. The new gas was sold to ENSTAR Natural Gas Co. and it helped the regional utility augment its gas supply during an ex- ceptionally cold winter. HEX, which is Alaskan-owned, plans more drilling this year and says prospects for more gas are good. Chugach and Hil- corp meanwhile plan more work at the Beluga field this year. Hilcorp also is busy drilling in other parts of the Inlet. New gas storage capabilities in Cook Inlet are also important. Hilcorp has long stored gas for its customers in depleted gas reservoirs but a new state law allowing the company to offer storage to third parties like Chugach Electric is allowing the elec- tric cooperative to store some of the gas it is producing at the Beluga field. Also, investments at another gas storage facility, the Cook Inlet Natural Gas Storage Alaska (CINGSA), allow it to operate at greater efficiency. CINGSA is operated by

There are now three LNG import plans. The farthest along is a project by Harvest Alaska, the infrastructure affiliate of pro- ducer Hilcorp Energy, to convert the moth- balled former ConocoPhillips LNG export plant at Nikiski, near Kenai, to become an import terminal. Harvest now owns the plant and is well along in engineering and regulatory ap- provals for its conversion to import LNG. The company is working in partnership with Chugach Electric to bring in and store LNG for the electric cooperative. Another plan, advanced by ENSTAR and Glenfarne Group, the infrastructure company also leading the Alaska LNG Project, is to pre-build a loading terminal and LNG storage at Nikiski to be able to import, and store, LNG for ENSTAR and other customers until the large Alaska LNG Project is built. A third plan now put forth by a new company, Cook Inlet LNG LLC, would convert the existing Osprey oil production platform on the Inlet’s west side to unload from a Floating Storage and Regasification Unit (FSRU). This would be moored adja- cent to the existing platform. The LNG would be “regasified” — con- verting it back to gaseous state by heating the liquified gas — and the gas moved through existing pipelines on the Inlet’s west side. Cook Inlet LNG is now working on regulatory approvals and plans to begin preliminary engineering for conversion of the oil platform. FSRUs are commonly used to transport LNG elsewhere and there are units that could be brought to Alaska. One of these projects will move forward as a contingency. While the Harvest Alas- ka conversion of an existing plant can be done faster, ENSTAR argues that its plan will have more capacity and will be more cost-effective. Cook Inlet LNG, on the other hand, said its plan to use an existing platform also can be economical. Which of these plans move forward, and how the de- cision will be made, are still uncertain.

ENSTAR, which is also one of its owners. While regional utilities like Chugach Electric and ENSTAR are breathing a little easier about the near term gas supplies, the long-term picture hasn’t changed. Large “legacy” gas fields in the Inlet that have long supplied gas for heating and power genera- tion are declining. New gas is being found but it’s not enough to fill the long-term gap. It’s hoped that the Alaska LNG project will move forward to bring large gas sup- plies from the North Slope but this is still uncertain. Meanwhile, the regional utilities have to have a backup plan, which is to im- port LNG to augment declining local gas. Utilities like ENSTAR and Chugach Electric are legally obligated to be able to supply their customers, regardless of the energy source. Planning for the contingen- cy, however, takes preparation focused on logistical solutions. Here’s a breakdown of three current LNG import plans for Alaska: Plans to import LNG to Alaska n Plan would convert the former ConocoPhillips LNG export plant at Nikiski to become an import terminal. Harvest owns the plant and is working to secure engineering and regulatory approvals. n Plan would pre-build a loading terminal and LNG storage at Nikiski to be able to import and store LNG for ENSTAR and other customers. Harvest Alaska ENSTAR and Glenfarne Group n Plan would convert the existing Osprey oil production platform on the Inlet’s west side to unload from a Floating Storage and Regasification Unit (FSRU). Cook Inlet LNG LLC

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ALASKA RESOURCE REVIEW JUNE 2026

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