A new round of state-backed funding is aimed at boosting natural gas production in Cook Inlet, with hopes of strengthening Southcentral Alaska’s energy security and economy.
The Alaska Industrial Development and Export Authority (AIDEA) announced this week it is releasing funds from a $50 million revolving line of credit to support HEX Cook Inlet LLC’s drilling operations in the Kitchen Lights Unit — a key gas field located off the Kenai Peninsula.
The funding will help accelerate drilling and development of two new offshore wells in 2025. HEX, an Alaska-owned company, is investing $40 million of its own money in the effort, which is expected to create up to 100 jobs during the development phase and establish five new permanent positions.
“This funding is critical to keeping Alaska’s energy resources developed by Alaskans, for Alaskans,” said John Hendrix, President and CEO of HEX Cook Inlet. “We’re proud to build a workforce rooted in our communities and focused on long-term energy solutions for the state.”
The announcement came during AIDEA’s public board meeting this week, where Hendrix and representatives from Furie Operating Alaska received a symbolic check from the agency.
The Kitchen Lights Unit has long been a central part of Cook Inlet’s gas supply. As demand for energy rises across Southcentral Alaska, AIDEA says the partnership with HEX demonstrates the importance of public-private collaboration to meet local needs.
“This investment in HEX Cook Inlet is a prime example of our mission to foster sustainable economic growth,” said AIDEA Board Chairman Dana Pruhs. “We’re not only strengthening Alaska’s energy infrastructure but also ensuring that Alaskans benefit directly through job creation and economic opportunities.”
The project comes at a time when utilities and regulators have raised concerns about long-term natural gas supply in Cook Inlet. AIDEA and HEX say this development could help stabilize the region’s energy future while expanding local employment.