Enstar signs for new North Fork gas supply

Enstar Natural Gas Co., though its affiliate Alaska Pipeline Co., has signed an agreement with Cook Inlet Energy Inc. for a continuing supply of natural gas from the North Fork gas field in the southern Kenai Peninsula, Enstar told the Regulatory Commission of Alaska on April 30. The commission must approve the gas supply agreement before the agreement can go into operation.

The North Fork field has been supplying gas to Enstar since 2011 under a gas sales agreement that ends around Sept. 1 of this year, with the newly filed supply agreement becoming effective upon termination of that previous agreement. Under the new agreement, which Enstar says will not increase any existing rate or charge, Cook Inlet Energy will sell North Fork gas to Enstar at a continuous rate of 2.5 million cubic feet per day until March 31, 2016, with the possibility of extending the contract for a further six months. The price of the gas will be $6.03 per thousand cubic feet.

The new agreement also has a provision to enable Enstar to purchase additional gas, but without any obligation on Cook Inlet Energy to sell that gas. And, while Cook Inlet Energy is responsible for the payment of any royalties and other expenses associated with the gas production, Enstar will incur the cost of transporting the gas by pipeline after receiving the gas from the gas producer.

- Alan Bailey