Competing LNG import plans at Kenai and a utility storage push highlight Alaska House Energy review

Juneau — On Jan. 27 the Alaska House Energy Committee heard two competing pathways to shore up South Central Alaska's gas supply: Harvest Midstream's proposal to repurpose the Kenai LNG terminal for imports, and Enstar's (presented as NSTAR/Enstar in the hearing) approach that pairs storage expansion with long-term gas sales agreements. The Regulatory Commission of Alaska (RCA) told lawmakers it lacks authority over LNG siting but retains power to review gas supply or terminal-use contracts that utilities submit for rate recovery.

RCA chair John Espindola told the committee the commission's order (U25004) and federal law place siting and construction of LNG import facilities under the Federal Energy Regulatory Commission's (FERC) exclusive jurisdiction "under the Natural Gas Act," while the RCA "has jurisdiction over gas supply agreements and terminal use agreements used to supply gas to consumers." He advised the committee the RCA can examine and potentially disallow recovery of costs that are later shown to be imprudently incurred.

Harvest Midstream president Sean Colarsa described Harvest's Kenai plan as a brownfield repurposing of an idled export terminal Harvest acquired on Nov. 11, 2025. Harvest told the committee it is pursuing an initial permitted regasification capacity of about 20 BCF per year (the installed hardware could support up to ~73 BCF/year), with targeted marine and onshore upgrades (new vaporizers, reinforced mooring, modernization of controls) and no new LNG tanks for the initial phase. Harvest estimated initial capital needs at roughly $300'$350 million and said an additional storage tank (to expand toward 70+ BCF/year) would cost on the order of $150 million.

Colarsa said Harvest filed amendments with FERC and a U.S. Coast Guard Waterway Suitability Assessment in early January 2026, requested a waiver of FERC's pre-filing process, and expects amendment review on a multi-month schedule that could produce an approval in roughly six months. He said Harvest requires customer commitments and RCA contract approvals before taking a final investment decision; under Harvest's current assumptions, the site could be operational about two years after securing offtake agreements (Harvest cited a late-2028 in-service target under those assumptions).

John Sims, president of Enstar Natural Gas Company, told the committee the utility sector remains vulnerable and must plan for reliability across several years. "We are not in a good place. Full stop," Sims said, warning the committee that some parts of the system rely on interruptible volumes and that a very cold winter could have outstripped contracted supplies. Sims said Enstar has filed for a new storage facility (a January 12 filing requesting expedited, 45-day consideration and a predetermination of prudency) that would add roughly 17 BCF of working gas; combined with existing Singza (11 BCF described in testimony), that would yield approximately 28 BCF of working storage.

Sims also described Enstar's commercial preference for structures that provide long-term flexibility and reduce the risk of stranded assets if a future North Slope pipeline (AKLNG) is built. He warned that committing to a particular import infrastructure without flexible commercial terms could reduce incentives for Cook Inlet production investment, since import contracts and terminal charges become embedded in customer bills for decades.

Committee members pressed both presenters on how projects would affect customer rates, timing of filings, and what the RCA can do to coordinate an orderly outcome. Harvest emphasized speed and lower initial capital because it will reuse infrastructure, while Enstar emphasized contract design, storage, and the commercial ability to transition to pipeline gas if the AKLNG project materializes. Neither presentation included final, approved rate schedules; both companies said contract details remain under negotiation and, in some cases, confidential.

RCA chair Espindola told the committee commissioners would raise the topic at a public RCA meeting the next day to inform their ongoing oversight. Co-chair Kai Holland closed the meeting with scheduling notes for the committee's upcoming hearings and adjourned at 2:57 p.m.

What to watch next: the RCA public meeting (Espindola said he will raise the topic there), any FERC amendment decisions on Kenai filings, Enstar's storage-docket outcome, and whether utilities file gas sales agreements with the RCA that would trigger detailed rate-review proceedings.