Regulators Approve Gas Exchange for Enstar
The Regulatory Commission of Alaska approved an agreement letting Enstar Natural Gas buy natural gas ahead of the winter shortage in Southcentral Alaska.
Updated on Nov. 6, 2026 in Utilities
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The Regulatory Commission of Alaska approved an exchange agreement in late October that lets Enstar Natural Gas buy about 1.2 billion cubic feet of natural gas. The deal involves Enstar, Matanuska Electric Association and Hilcorp as winter temperatures settle in across Southcentral.
Why it matters
Enstar supplies gas to about 150,000 members in Southcentral, where supply is tightening as winter arrives. The agreement is intended to help Enstar meet customer demand this winter, though it does not resolve the long-term gas shortage in Alaska.
The agreement covers about 1.2 billion cubic feet of natural gas, lifting Enstar's projected storage to roughly 5 billion cubic feet against a 6 to 7 billion cubic foot end-of-December target. The long-term shortfall in Southcentral Alaska remains unresolved.
The players
Enstar Natural Gas
Enstar Natural Gas is the Anchorage-based utility that supplies natural gas to about 150,000 members across Southcentral Alaska.
Matanuska Electric Association
Matanuska Electric Association is a member-owned electric cooperative serving the Matanuska-Susitna Valley and provides both power and gas to about 60,000 members.
Hilcorp
Hilcorp is an independent oil and gas producer that operates much of the natural gas production in Cook Inlet, Alaska's main gas-producing basin.
Regulatory Commission of Alaska
The Regulatory Commission of Alaska is the state agency that regulates utilities and approved the gas exchange agreement.
The details
Under the exchange, Enstar buys natural gas from Hilcorp and returns an equivalent volume to Matanuska Electric Association by March 2028. The Mat-Su utility serves about 60,000 members and says the deal will not affect its ability to generate power or supply gas to them.
Timeline
Late October 2026: Regulatory Commission of Alaska approves the exchange agreement.
End of December 2026: Enstar targets 6 to 7 billion cubic feet of gas in storage.
2027 to 2029: Mat-Su utility projects about $2 million in customer savings.
March 2028: Enstar must return the equivalent gas volume to Matanuska Electric Association.
Roadmap
Southcentral Alaska has relied on Cook Inlet gas for decades, and falling output from that basin has left utilities scrambling for supply each winter. The exchange agreement is a short-term workaround that follows that pattern rather than a structural fix.
Enstar customers in Southcentral Alaska face the risk of a tight gas supply this winter, though the agreement is meant to help meet demand. The Mat-Su utility projects about $2 million in customer savings between 2027 and 2029.
The takeaway
Customers in Southcentral Alaska should watch for storage progress through the winter, since the exchange agreement is a temporary measure and not a permanent fix for the gas shortage.
What happens next
Enstar's storage target of 6 to 7 billion cubic feet is due by the end of December 2026, and the gas must be returned to Matanuska Electric Association by March 2028.
Further reading
For broader context on supply pressures, see Utilities coverage across Alaska.
Source note: This article includes information reported by Alaska Public Media.
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