Access to Gas
Gas for Alaskans
It is anticipated that along the Alaska LNG pipeline route, there will be at least five offtake points to help facilitate in-state gas delivery to Alaskans. AGDC in consultation with the State, local communities, and the public, will be working to identify the most appropriate locations for these offtake points.
One of the principal benefits of the Alaska LNG project is its potential to provide Alaskans with a reliable, long-term supply of natural gas. Along the pipeline route, there will be access points to facilitate in-state gas delivery. Formulating the state’s domestic gas plan involves a number of engineering, commercial, financial and policy considerations. The first step involves forecasting Alaska’s current and future domestic gas needs. In 2015, AGDC completed a detailed forecast of in-state demand which analyzed historical production and consumption, identified both existing and potential demand segments, and identified the most likely forecast scenarios through 2040.
Moving natural gas from the mainline to in-state customers downstream will require a combination of additional infrastructure to include off-take facilities, spur lines, and local distribution systems. The cost of this infrastructure will be paid by third parties; if not the state, then local governments, public utilities, end users or a combination of these groups. AGDC is working collaboratively with the state, to develop a framework for evaluating off-take infrastructure investments and to assist policy makers, Alaskan communities, utilities and the public in identifying the most appropriate location for in-state access points.
Initially, the focus has been on ensuring that the project can satisfy existing in-state demand, specifically the electric utilities and local gas distribution companies already operating within the state. However, AGDC is also assessing the technical and economic feasibility of expanding distribution to areas of the state where natural gas isn’t currently available, including the potential for communities in relatively close proximity of the pipeline to directly access natural gas. AGDC may help aggregate small quantities of in-state demand, primarily for communities without an existing public utility, and potentially serve as an intermediary between gas owners and small in-state buyers
The state’s final off-take proposal may involve a phased approach with some facilities built during pipeline construction and others conditioned on future demand growth or specific legislative policy directive. While AGDC is responsible for coordinating this planning effort, no final decisions have been made and as yet, no public money has been appropriated for the construction of any in-state off-take facilities.