Hilcorp, ENSTAR seek leases for three Cook Inlet gas storage sites

Two energy companies want to turn depleted Cook Inlet gas fields into storage reservoirs, a move state officials say is critical as the basin's production declines.

Hilcorp Cook Inlet filed applications for two sites. ENSTAR Natural Gas filed for a third. All three would store natural gas in subsurface pore space where gas was previously extracted.

The Alaska Energy Authority told lawmakers in 2023 that storage capacity would improve supply reliability for Southcentral Alaska. The state has been working to facilitate storage through lease amendments as Cook Inlet reserves decline.

Governor Mike Dunleavy acknowledged the basin's limits last year. "I want to thank Hilcorp, I want to thank Hex and others that are trying to get more gas out of the inlet, but it's a very, very mature basin," Dunleavy said. "And the hope that we're going to stumble upon something large there, according to our people, is slim."

Hilcorp's proposals target the Kenai Loop Gas Field and the Beluga River Unit. ENSTAR's application would convert gas-producing horizons into a storage reservoir. The Division of Oil and Gas is accepting public comments on all three applications.

Written comments can be submitted to the Division of Oil and Gas. The division will provide copies of final decisions to all parties who submit comments.