
John Sims
27:44 - 28:39
"What PRA said is that in order to meet demand starting in 2010 through 2020, up to 185 wells would need to be drilled over that timeframe. That requires an estimated $1.8 to $2.8 billion and would need about an average of 13.6 wells completed per year."
“What PRA said is that in order to meet demand starting in 2010 through 2020, up to 185 wells would need to be drilled over that timeframe. That requires an estimated $1.8 to $2.8 billion and would need about an average of 13.6 wells completed per year.”
So this is not the first time that we've been dealing with gas supply challenges. If you look back 2009, Chugach, ML&P, and Enstar were also having a hard time getting gas supply contracts with then Marathon and Conoco who were operating in the inlet. So we hired Petrotechnical Resources of Alaska, or PRA as they're known, to look at an analysis of what's required from an activity perspective to actually meet Cook Inlet Utility customers' demand. And to sum it up really quickly, What PRA said is that in order to meet demand starting in 2010 through 2020, up to 185 wells would need to be drilled over that timeframe. That requires an estimated $1.8 to $2.8 billion and would need about an average of 13.6 wells completed per year.
Enstar Natural Gas faces losing its primary gas supply in 2033 when its contract with Hilcorp expires, leaving Southcentral Alaska utilities with no Cook Inlet producer capable of matching the scale of investment that has kept the basin producing for the past decade.
