Enstar secures 1.2 billion cubic feet of gas for Southcentral winter

Enstar Natural Gas customers in Southcentral will have more fuel available this winter after the Regulatory Commission of Alaska approved a new supply agreement in late October. The deal allows the utility to purchase approximately 1.2 billion cubic feet of natural gas from Matanuska Electric Association and Hilcorp.

The approval addresses an immediate shortage facing the region as winter temperatures arrive. Enstar serves roughly 150,000 members across the area. The agreement requires Enstar to return the equivalent volume of natural gas to Matanuska Electric Association by March 2028.

Enstar president John Sims stated that the utility prefers to plan gas supplies well in advance but acknowledged this deal was secured on a tight timeline. "We don't like to be just in time when we're planning for gas supply, but this is just in time," Sims said.

The new supply increases projected storage levels to about 5 billion cubic feet. Sims noted that the utility aims to hold between 6 and 7 billion cubic feet in storage by the end of December to meet demand during the coldest months. He described the 1.2 billion cubic feet from Matanuska Electric as a major factor in ensuring adequate reserves for the upcoming season.

While the deal helps meet this winter's demand, Enstar indicated it does not resolve the long-term gas shortage. Matanuska Electric Association stated the arrangement will not interfere with its ability to generate power for its 60,000 members. The utility predicts the agreement will save its customers approximately $2 million between 2027 and 2029.