At Wednesday’s Kenai/Soldotna joint chambers of commerce luncheon, Kenai Peninsula Borough Mayor Peter Micciche presented an update on Cook Inlet energy. According to the mayor, the recently formed South Central Mayors Energy Coalition’s goals are to understand the nature and potential solutions to the projected Cook Inlet natural gas and energy shortfall and advocate for affordable solutions that will keep the lights and heat on.
Mayor Micciche says they evaluated all the potential projects, not only oil and gas but renewables and other projects that are both likely, and non-likely, to come online.
He says it’s proven to policymakers in Alaska that there’s a scheduling problem. “We are going to have a shortage in Cook Inlet by 27-28 depending on the next couple of winters.”
Micciche continues to say they are improving the storage capacity, but the bottom line is they will have to have something additional to put into that storage for the first couple of years.
“All of us support natural gas that’s locally produced first,” said Micciche. “All of us support a large-scale project from the slope eventually, but unfortunately, neither of those volumes of gas are going to be here in time to keep us from having a shortage, just supply shortage of natural gas and Cook Inlet.”
Also, they’re likely going to have to import small quantities of LNG to ensure that storage is full by November, starting the winter with full storage until these other projects come online, says Micciche.
They’re looking at the lowest-cost option, which is the Kenai LNG facility.
There wouldn’t be a large investment that would have to monetize over time, yet a low-cost investment would be enough to ensure that storage is adequate for the winters while they bring these other projects online.
Mayor Micciche mentioned that they are still very supportive of a large-scale LNG project that “goes through the spine of Alaska,” not only providing a long-term supply of natural gas for the Peninsula but also all the industries that could occur along the spine of Alaska from the North Slope to Cook Inlet.
He acknowledged the unusual winter by saying, “It hasn’t moved it in the wrong direction.”
The 96,000,000 standard cubic feet a day of usage that the rail belt typically consumes has been fairly constant. “Where it moves in the other direction is when there is an extended period of cold weather.”
He also spoke on a few power projects, including Solstice Energy Puppy Dog Lake Solar, which will start between 2027 and 2028, and Bradley Lake Dixon Diversion, which will start in 2030, both on the Kenai Peninsula.