Currently, over 225 billion cubic feet (Bcf) of natural gas is consumed each year in South Central Alaska. Of the 225 Bcf 36.3% is consumed by LNG exports, 24.9% by ammonia-urea production, 15.5% by power generation, 12.8% by gas utilities, and 10.5% by other uses. However, new gas discoveries feeding this area of Alaska over the last 20 years have been few and relatively small. Unless North Slope gas can be delivered to South Central Alaska, dwindling Cook Inlet gas reserves may cause certain industries to curtail operations and the price of natural gas for utility uses such as electric generation and home heating to rise precipitously.
With growing momentum for the construction of a natural gas pipeline to transport gas from Alaska’s North Slope to markets in Canada and the U.S. Lower 48 states (ANS Pipeline), there is a need to evaluate information related to potential routing, cost, and various other factors related to the construction and operation of a spur pipeline that would bring a portion of the North Slope natural gas from the main pipeline to South Central and Interior Alaska. The study being conducted under this effort assumes that the ANS Pipeline will be constructed in the next decade and that this pipeline will be routed, in part, from the North Slope to Fairbanks, then along the Alaska Highway through Delta Junction to Tok Junction, AK.
In particular, this effort looks at information directly related to the potential route for a spur pipeline between the ANS Pipeline and South Central Alaska. The study investigates two potential routes. The first route extends directly from Fairbanks along the Parks Highway, terminating in Wasilla with a tie-in to existing ENSTAR distribution pipelines, a distance of about 325 miles (Fairbanks Spur). The second route begins in Delta Junction, proceeds to Glennallen and ends near Palmer, a distance of about 290 miles (Delta Junction Spur).