NSTAR outlines Cook Inlet shortfall, signs exclusivity deal with Glenfarn as stopgap

John Sims, president of NSTAR Natural Gas, told the Senate Resources Committee on Jan. 24 that the company has spent over $4,500,000 in the last 24 months evaluating options to secure long‑term gas for utilities on Alaska's rail belt and has entered an exclusivity agreement with developer Glenfarn to pursue an LNG import project.

"There's no one else that holds the same obligation and the same duty to serve," Sims said, describing the statutory duty utilities face to provide reasonably continuous service. He framed the Glenfarn agreement as an early-stage step toward a joint development agreement and possible final investment decision in the coming years, while stressing the project remains at an initial stage and many details must be negotiated.

The nut graf: Utilities face differing contract expirations and immediate winter needs that in part motivated the search for additional supply. Homer Electric currently will be served on an interruptible basis beginning April 1, 2025; other utilities face later contract expirations (MEA and Chugach in 2028, NSTAR with Hillcorp in 2033). Sims told the committee that…