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.
Thank you for the update on this important local topic.
CEA’s “push toward diversification” is euphemism for a push toward more expensive solar and wind, the so-called renewable sources that simply don’t and can’t hack the program. This comes from that same or like-minded people that told us the ML&P acquisition would lower our costs. It actually accomplished the opposite.
Alaska sits on more oil and natural gas than we can locate, yet we are paying some of the highest prices for fuel, and now are told we’re facing shortages of natural gas? Insane!
They said “gas supply risks” I heard “More useless solar and wind projects.” coupled with “stick the rate payers with the outrageous costs while we take the credit for saving the world.”
Good synopsis Todd!
More BS from Chugach to impose the BS alternative energy onto the backs of the ratepayers.
I really wonder about Chugach.
Bring on the LNG folks. It’s the only way now.
LNG is at least 2 to 3 times more expensive than natural gas. Why in the world would Chugach even consider LNG as an option? Alaskan’s already pay some of the most expensive electricity costs in the world! Can our economy absorb a doubling of utility rates? Build a small diameter pipeline from the vast natural gas fields on the North Slope and that will solve Alaska’s energy concerns for decades. If there is any gas left over than investors can dabble in the expensive LNG infrastructure for export, but beware, current foreign markets for American LNG are largely there because of our Gun Boat diplomacy. The world is rapidly changing to a multipolar reality and if the United States is going to maintain our dominance in international markets, than we must return to diplomacy and the international rule of law which has been sadly lacking for decades, now.
This where the feckless leadership in this state has gotten us.
Alaska is home to the largest proven natural gas reserves in the world – AND we are incapable of providing enough natural gas to heat our homes.
If anyone bites for an established politician for governor – YOU are the problem.
We need a disrupter / hellraiser – someone who has never been a politician – who comes from the private sector and isnt beholden to the “system”.
I had high hopes for Yundt – but in his first term he turned out to be one of the worst – complete total sellout.
It’s funny, for a bunch of really smart Chugach Electric people, they are missing an obvious choice. Chugach uses 17bcf of natural gas per year, equivalent to 1940 mcf/hour. At $7.50/mcf (guess on my part), thats $14.5k/hour for fuel. For an equivalent LPG supply, that’s 2160 gallons/hour. A big user can get it for $2/gal, up to $4/gal for smaller users. That’s $4k to $8k/hour for LPG. Granted there’d be some tank costs, and possible dual fuel conversion costs, but compared to the huge costs for the LNG facility in Kenai, this may be a super easy and relatively cheap alternate. I would imagine Crowley would bend over backwards for an LPG contract of $36 million a year. Chase it down Todd………..
When the majority of voters for CEA board directors are IBEW members this is what you get