AIX Energy ends production at Kenai Loop

Kristen Nelson

Petroleum News

The Alaska Department of Natural Resources' Division of Oil and Gas said on their December Cook Inlet oil and gas activity map that AIX Energy LLC had received permission from the division to suspend production at the Kenai Loop gas field. The company will begin regulatory work to convert the field to gas storage, the division said.

Buccaneer Alaskan Operations began production at Kenai Loop in January 2012. AIX took over in January 2015.

As reported in Petroleum News, Enstar Natural Gas told the Regulatory Commission of Alaska it proposes to acquire the Upper Tyonek Pool gas reservoir, which is depleted, and associated facilities from AIX Energy. Enstar is asking RCA to find development of the depleted pool as a natural gas storage facility to be prudent and consistent with the company's role as a regulated gas utility.

Alaska Oil and Gas Conservation Commission production data show AIX's production at Kenai Loop has been dropping steadily, with production from just a single well since 2023, although AOGCC shows three wells at the field.

--KRISTEN NELSON