IGU moves LNG storage tanks to North Pole

Alan Bailey

Petroleum News

The Interior Gas Utility has announced that it is moving two liquefied natural gas tanks from Fairbanks to North Pole as part of an initiative to make natural gas available to households and businesses in the North Pole area. The move of the tanks, which will enable the storage of LNG in North Pole, comes as part of the Interior Energy Project, an Alaska Industrial Development and Export Authority project to bring increased supplies of affordable natural gas to Fairbanks and its surrounds.

A previous phase of the IEP involved constructing an initial gas distribution pipeline network in North Pole. The LNG storage facility under construction will make possible a supply of gas through that network. The two tanks for the facility became available after IGU completed a new 5.25 million-gallon LNG storage facility in central Fairbanks at the end of last year. The tank in Fairbanks, while storing gas for use in the city, will also act as backup storage for North Pole.

“The movement of the storage tanks is an exciting major milestone in providing North Pole residents the ability to ‘breathe easier’ with clean, natural gas,” said IGU General Manager Dan Britton.

The LNG is produced at IGU’s Titan plant, near Point Mackenzie on the Cook Inlet. A decision on whether to expand that plant has been deferred as a consequence of economic uncertainty associated with the COVID-19 pandemic. However, the greatly expanded LNG storage capacity in Fairbanks will enable the warehousing of summer-produced LNG, thus enabling the supply of gas to more customers in Fairbanks and North Pole.

“When we look back at where we were a year ago compared to where we are now, we are greatly encouraged that, even with the turmoil of COVID-19, we are able to continue to move forward with bringing access of cleaner burning natural gas to our community for both Fairbanks and North Pole homes and businesses,” said Steve Haagenson, chair of the IGU board.

- ALAN BAILEY