Alaska Natural Gas Storage Lease
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FAQ
Southcentral Alaska's heating needs are met almost exclusively by ENSTAR Natural Gas Company, which moves the gas from the Cook Inlet gas fields through over 300 miles of pipelines, and a little over 3,000 miles of distribution mains to the Kenai Peninsula, Anchorage and Matanuska Valley areas.
Alaska has three refineries that produce gasoline, diesel, and jet fuel for Alaska markets. Refineries are located in Nikiski, Valdez, and North Pole.
Alaska had proved oil reserves amounting to nearly 3.13 billion barrels as of 2021. Proved reserves in the northernmost U.S. state are only a third of what they used to be in 1980, and oil production in Alaska has similarly declined.
A refinery in Kenai, southwest of Anchorage, produces most of the state's motor gasoline as well as some distillate fuel oil. Two other refineries, located in Valdez and near Fairbanks, also produce diesel and heating fuels.
Each year since 2011, Alaska has been a net importer of refined petroleum product.
Alaska Quick Facts Many rural communities in Alaska rely primarily on diesel-fueled electric generators for power, and Alaska ranks second only to Hawaii in the share of its total electricity--14% in 2022--generated from petroleum.
Crude oil is the main source of gasoline and the key driver in gasoline prices. The price of crude oil in Alaska is tied to that global market, even though some of the crude oil used to make gasoline in Alaska comes from in-state oil fields.
Gas used in lease operations includes usage such as for drilling operations, heaters, dehydraters, field compressors, and net used for gas lift.
