
Brett Watson
10:24 - 11:05
"In 2033, when all of NStar's contracts have expired,, we're probably facing around $15 per MCF gas."
“In 2033, when all of NStar's contracts have expired,, we're probably facing around $15 per MCF gas.”
One of the things I think it's important to emphasize about the no-project case is where we are today is not where we will be in the future. We can look at the crystal ball, see when these contracts are expiring, look at those Pacific LNG prices, and come up with an estimate for what this blended price might be over this period of time when contracts are sort of rolling off in the Cook Inlet. So you can see here that we're going to be phasing or marching toward around a $15 price point, right? In 2033, when all of NStar's contracts have expired,, we're probably facing around $15 per MCF gas. I want to emphasize, though, that there's considerable volatility in these LNG prices.
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.
