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State reviews multiple Kenai-area storage applications as basin deliverability concerns mount
Summary
DNR said it has three storage applications under review including two for Kenai Loop (from Hillcor and NSTAR) and a Beluga River filing; commissioners and directors emphasized deliverability rates matter as much as total capacity and noted public comment closed in July.
Haley Payne, director of the Division of Oil and Gas, told the committee DNR is reviewing three storage applications submitted earlier in 2026 and that public comment for those applications closed in July. Two applications target the Kenai Loop area (from Hillcor and NSTAR) and another targets Beluga River; Payne said DNR is completing best‑interest findings and technical meetings with applicants and lessors.
Payne and Commissioner Crother emphasized that storage suitability depends on both total capacity and deliverability (the daily withdrawal rate). DNR noted existing regulated facilities — Singsa (Singhsa/Singzo in slides) and Kenai Pool 6 — have dashboards showing daily inventory and deliverability; current basin‑wide injected storage was reported at about 42.5 Bcf (~58% of working capacity) at the time of the briefing.
Legislators asked how quickly new storage could be filled; witnesses answered that building storage without available gas to inject will leave new capacity idle and that additional storage is useful only when accompanied by reliable supply and contracts to fill it.
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