Oliktok Pipeline seeks 160% rate hike on three North Slope gas segments

Oliktok Pipeline Company has filed a tariff with the Regulatory Commission of Alaska proposing to more than double rates on three North Slope gas pipeline segments, with the increases set to take effect August 1, 2026, if approved.

The filing, designated TL57-334 and submitted in late June 2026, asks the Commission to approve increases of roughly 160 percent across all three segments. The Kuparuk River Unit rate at Central Processing Facility No. 1 would rise from $0.580 to $1.528 per thousand standard cubic feet. The Gas Spur Pipeline rate would rise from $0.555 to $1.464. The Gas Hydrates Project rate would rise from $0.346 to $0.914.

Higher North Slope pipeline tariffs could erode gas netback value, harming both producers and state royalty and tax revenues, according to economic analysis prepared for the Anchorage Economic Development Corporation. The state holds a stake as royalty owner and severance tax collector when transport costs reduce gas value.

The filing is part of a recurring pattern of tariff activity on this system. Oliktok previously filed TL50-334 to set an initial rate for a new Gas Hydrates Project delivery point at $0.43 per thousand standard cubic feet, and later filed TL51-334 and TL52-334, which prompted an RCA public notice and comment opportunity in 2024. TL57-334 is based on a new revenue requirement study. If the Commission suspends the filing rather than approving it outright, Oliktok has asked that the proposed rates be approved on a temporary and refundable basis while the proceeding continues.

Public comments are due to the RCA by 5 p.m. on July 21, 2026. Commenters must also send a copy to Oliktok's counsel, Dean Thompson. Parties requiring special accommodations must submit requests by July 14. Comments can be filed at the Commission's Anchorage office at 701 West 8th Avenue, Suite 300, or through the RCA website by searching for TL57-334.