Enstar doesn’t have contracts for all the gas it needs
December 23, 2010
NATURAL GAS: 2011 about a billion cubic feet short of the need.
From the Petroleum News: Enstar Natural Gas Co. as of the end of this year no longer will have firm contracts to receive all the gas it expects to need for its home and business customers in Southcentral Alaska.That’s the first time the company has ever been short in that way, said Enstar spokesman John Sims.
And it’s significant for local residents, because Enstar has 95 percent of the space heating market in Southcentral Alaska.
The amount of Enstar’s forecast gas need for 2011 that is not under firm contract is not large, Sims said, about 1 billion cubic feet out of a total of more than 30 billion cubic feet.
By 2012 that unmet need — forecast gas not under firm contract — will be about 1.5 billion cubic feet. The unmet need is larger in 2013, about 10 percent of supply needed. Enstar has options to purchase extra gas from Cook Inlet producers if its forecasts are right, Sims said.
But Enstar is not sure what the costs will be for gas in excess of firm commitments, he said. There is a ceiling in most of Enstar’s contracts for excess gas, but Sims said Enstar doesn’t anticipate that the cost will be that high. Read more