Utility seeks to block gas exports

An Anchorage utility wants a federal appeals court to block exports of Cook Inlet natural gas to Asia.

Chugach Electric Association generates much of the power it sells by burning natural gas.

The utility's petition — with the San Francisco-based 9th U.S. Circuit Court of Appeals — challenges a U.S. Department of Energy decision.

The June decision would allow oil companies, ConocoPhillips and Marathon, to keep exporting Cook Inlet gas through March 2011.

Chugach's Sept. 26 petition is the latest sign of rising local energy tensions in southcentral Alaska, where natural gas is a critical commodity for heating and powering homes and businesses.

Cook Inlet gas fields once held far more gas than needed for local needs.

But gas reserves have begun to dwindle. Signs of tightening supply have shown up in the form of higher retail gas prices as well as the closure of a gas-dependent fertilizer plant in Nikiski.

"Chugach is the largest electric utility in the state of Alaska," Suzanne Gibson, the utility's energy resources director, said in a statement. "We have an obligation and duty to protect our customers by ensuring that there is adequate natural gas in Cook Inlet and that it is available at a reasonable price. That is why we are involved in this case."

Conoco and minority partner Marathon have been exporting liquefied natural gas, or LNG, from the Kenai Peninsula since 1967. The gas is cooled into a liquid and loaded onto tankers bound for utility customers in Japan.

Historically the process accounts for more than a third of total consumption of Cook Inlet gas.

The DOE's Office of Fossil Energy authorized LNG exports for two more years beginning in April, judging Cook Inlet gas as sufficient to meet both local and export demand.

Chugach's request for a rehearing of the DOE order was denied.

Robert Corbin, a DOE official who signed the export order, said he has been advised by government attorneys not to comment on the Chugach court challenge.

A Conoco spokeswoman, Natalie Lowman, also declined comment.

Gov. Sarah Palin and other export supporters said continued overseas gas shipments could encourage Conoco and others to drill for new gas supplies.

But the Regulatory Commission of Alaska recently raised concern about the DOE decision.

The five-member commission said in an October order that the DOE as well as state officials "could have done a better job in ensuring that local needs were met at reasonable pricing terms before the LNG export license was extended."

The panel at the time was considering two wholesale gas supply contracts for Enstar Natural Gas Co.

Related News

trump-vision-of-us-energy-dominance-faces-real-world-constraints

Trump's Vision of U.S. Energy Dominance Faces Real-World Constraints

WASHINGTON DC - Former President Donald Trump has consistently advocated for “energy dominance” as a cornerstone of his energy policy. In his vision, the United States would leverage its abundant natural resources to achieve energy self-sufficiency, flood global markets with cheap energy, and undercut competitors like Russia and OPEC nations. However, while the rhetoric resonates with many Americans, particularly those in energy-producing states, the pursuit of energy dominance faces significant real-world challenges that could limit its feasibility and impact.

The Energy Dominance Vision

Trump’s energy dominance strategy revolves around deregulation, increased domestic production of oil and gas, and the rollback…

READ MORE
Puerto Rico power workers

Electricity restored to 75 percent of customers in Puerto Rico

READ MORE

Las Pailas plant, Costa Rica

Costa Rica hits record electricity generation from 99% renewable sources

READ MORE

washington-ag-leads-legal-challenge-against-trumps-energy-emergency

Washington AG Leads Legal Challenge Against Trump’s Energy Emergency

READ MORE

Germany should stop lecturing France on nuclear power, says Eon boss

READ MORE