Chugach signs new Hilcorp gas contract to 2018
Chugach Electric Association has asked the Regulatory Commission of Alaska to approve a new gas supply agreement with gas producer Hilcorp Alaska. The new agreement, together with Chugach Electric’s existing contracts, will ensure that the utility has sufficient gas to meet its anticipated power generation needs through the first quarter of 2018, Chugach Electric says.
Faced with pending gas supply shortages from the Cook Inlet basin, Southcentral utilities had been anticipating having to import gas into the region within the next couple of years or so. But with Hilcorp, a newcomer to the basin, pursuing an aggressive development program across many of the basin’s gas fields, the utilities have recently been talking about the projected gas shortfall moving out to 2018. The new supply agreement with Chugach Electric, which runs from the beginning of 2015 to early 2018, would appear to confirm that more optimistic view of the gas supply situation.
According to a July 12 tariff advice filed with the Regulatory Commission of Alaska by Chugach Electric, the utility anticipates purchasing about 17.7 billion cubic feet of gas from Hilcorp during the term of the purchase agreement, with pricing following price caps specified under a consent decree agreed between Hilcorp and the State of Alaska to address anti-trust concerns following Hilcorp’s takeover of both Chevron’s and Marathon Oil’s Cook Inlet gas fields.
—Alan Bailey
Buccaneer completes Cosmo No. 1 well
Chugach Electric Association has asked the Regulatory Commission of Alaska to approve a new gas supply agreement with gas producer Hilcorp Alaska. The new agreement, together with Chugach Electric’s existing contracts, will ensure that the utility has sufficient gas to meet its anticipated power generation needs through the first quarter of 2018, Chugach Electric says.
Faced with pending gas supply shortages from the Cook Inlet basin, Southcentral utilities had been anticipating having to import gas into the region within the next couple of years or so. But with Hilcorp, a newcomer to the basin, pursuing an aggressive development program across many of the basin’s gas fields, the utilities have recently been talking about the projected gas shortfall moving out to 2018. The new supply agreement with Chugach Electric, which runs from the beginning of 2015 to early 2018, would appear to confirm that more optimistic view of the gas supply situation.
According to a July 12 tariff advice filed with the Regulatory Commission of Alaska by Chugach Electric, the utility anticipates purchasing about 17.7 billion cubic feet of gas from Hilcorp during the term of the purchase agreement, with pricing following price caps specified under a consent decree agreed between Hilcorp and the State of Alaska to address anti-trust concerns following Hilcorp’s takeover of both Chevron’s and Marathon Oil’s Cook Inlet gas fields.
—Alan Bailey
790 barrels a day for July, up 1.2 percent (14,146 barrels a day) from a June average of 1,164,644 barrels a day.
e well using the Endeavour jack-up drilling rig.
—Eric Lidji
See stories in July 21 issue, available online at 11 a.m. Friday, July 19 at www.PetroleumNews.com
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