As Alaska’s largest electric utility, Chugach Electric Association is navigating challenges in its natural gas supply, a critical resource powering about 80% of its generation. During the November 19, 2025, Regular Board of Directors Meeting, officials provided a key update on gas operations, highlighting efforts to maintain reliability amid potential disruptions in the Cook Inlet region.
Fuel Supply Manager Kevin Skiba delivered a presentation on the gas scheduling and its importance to the usage and dispatching of gas across the system. The small team monitors weather, coordinates with maintenance, and works to balance gas usage with Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) to avoid penalties on the operation of the gas transmission system.
Natural Gas Manager Daniel Herrmann reviewed current supply agreements and storage status. Herrmann shared updates from a CINGSA semi-annual customer meeting last month highlighting cleanouts on two of the wells CINGSA had previously issued. Herrmann stated CEA has roughly 1.7BCF (billion cubic feet) of gas in storage, approximately 10% of the total volume burned in a year, for winter energy demands. Along with gas storage, an increase in production at the Beluga field also led to more supply for the utility with more drilling planned for 2026. Gross production estimated at Beluga is 16BCF per year with annual usage at 13BCF leaving a 3BCF buffer.
Herrmann stated CEA is advancing storage agreements with Hilcorp particularly in Pool 6 to inject excess gas from Beluga in the second quarter of 2026 along with the development of West Side storage plans.
When asked by the Board, what gives Herrmann confidence in the gas supply going into the winter, he pointed to the increased production of gas at Beluga as well as the well integrity work by CINGSA to clean and prep the wells.
Herrmann also reiterated that Harvest closed on the purchase of the Kenai LNG facility. This will enable continued work on meeting gas supplies when existing contracts expire.
Specific costs were not detailed in the public session, with sensitive financial discussions reserved for executive deliberations to safeguard the cooperative’s position.
The update aligns with Chugach’s push toward diversification, including anticipation of imported liquefied natural gas (LNG) to fill gaps projected as early as 2027, per recent industry analyses. This comes alongside renewable expansions, such as the newly approved 10-megawatt Beluga Solar Project, set for completion by October 2027.