Cheaper heat, lower prices for electricity and cleaner air all could be possible for residents of Fairbanks, AK, and rural areas with greater reliance on natural gas, according to a newly released report.

The report was compiled by PDC Harris Group for the Alaska Gasline Port Authority (AGPA). It predicted that the average Fairbanks household would save nearly $3,000 per year on home space heating with natural gas supplied by the All Alaska Gasline being sought by AGPA.

“This report shows the clear cost savings for Interior residents with gas from a large gasline due to the enormous economy of scale our project brings…” said AGPA Project Manager Bill Walker, who added the savings are achievable because the line would run through the Fairbanks North Star Borough.

“It also secures a low-cost source of gas for North Pole, our military bases and Golden Valley Electric Association’s North Pole electrical power generating turbines.”

AGPA was created 12 years ago to pursue the All Alaska Gasline from the North Slope to Valdez, AK. It would run parallel to the state’s North Slope oil pipeline. At Valdez some of the gas would be liquefied for export besides local use.

“The export component is what makes the cost of gas so affordable for Alaska’s consumers,” Walker said. “Alaskans will enjoy the economy of scale a large export project brings. It also has the enormous benefit of bringing Alaska new revenue.”

AGPA said liquefied natural gas could be shipped from Valdez to barge-accessible communities in Alaska to replace more costly fuels for space heating and power generation. Bethel, AK, is a town that was selected as a representative community for developing cost models of converting from diesel fuel to natural gas.

The report found that savings for a town such as Bethel “range from $229 million to $886 million over the period 2021 through 2051 when assuming 100% displacement of petroleum distillates used for space heating and power generation.”

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