Inaction on the gasline leaves the Railbelt vulnerable

By Jeff Epperheimer

During the legislative conference committee debate on the Alaska LNG project, House Speaker Bryce Edgmon questioned whether the Legislature had enough time to move the project forward.

That concern deserves consideration. But as the owner of a Kenai business that has supported Alaska's energy industry for decades, I see another side of the equation: Alaska no longer has the luxury of waiting.

Every day, our company works alongside the welders, mechanics, electricians, drillers, crane operators, vessel crews, inspectors, and countless other men and women who keep Southcentral Alaska supplied with natural gas. Their work heats our homes, powers our businesses, and keeps the lights on across the Railbelt.

Recently, Sen. Bill Wielechowski argued that Cook Inlet producers should be doing more to increase natural gas production. From where I stand, that doesn't reflect what many of us working in this industry see every day.

Hilcorp continues investing $400–500 million annually in Cook Inlet to keep gas flowing. Two land rigs drilled through the winter, the Spartan 151 jack-up rig returned offshore after breakup, and crews continue drilling from the Tyonek Platform. HEX/Furie is also advancing offshore drilling using Alaska workers.

These companies aren't standing still. They're investing billions, supporting Alaska contractors, creating jobs, and extending the life of Cook Inlet through the dedication of a highly skilled workforce.

The challenge isn't a lack of effort — it's geology.

Cook Inlet is a mature basin. New wells are more difficult and expensive to drill, and generally produce less than the fields that supplied Alaska for decades. Continued investment has bought valuable time, but it cannot change the reality that Southcentral Alaska needs another long-term source of natural gas.

Utilities have warned for years that Railbelt gas supplies will tighten. That's why the Alaska LNG project is so important. While many view it primarily as an export project, it is also Alaska's long-term energy plan.

Bringing North Slope gas to the Railbelt would provide reliable energy for decades while reducing the risk of shortages. Waiting another year or two won't improve the project — it simply increases the chance that Alaska will be forced to react to an energy crisis instead of preventing one.

If Cook Inlet can no longer meet demand before a replacement supply is available, the Railbelt could face importing LNG or burning diesel to keep homes warm and businesses operating. That means higher costs, fewer Alaska jobs, greater dependence on outside markets, and more uncertainty for families and employers.

Today, Alaska has something it has spent decades working toward: a developer prepared to invest, permits already in place, and an urgent need to secure a long-term gas supply. Those conditions may not exist forever.

That's why the Legislature should pass a clean gasline bill. Adding new taxes or unrelated policy provisions at the last minute sends the wrong message to investors and risks delaying the very project Alaska needs.

I've spent my career building a business in Kenai because I believe in Alaska and its people. In recent years, I've watched many small businesses become increasingly cautious—not because they lack confidence in their communities, but because years of economic uncertainty have made investing in the future more difficult.

The Alaska LNG project represents far more than a pipeline. It offers an opportunity to restore confidence in Alaska's economy. A project of this scale would create work for contractors, suppliers, restaurants, retailers, hotels, transportation companies, and hundreds of small businesses across the state. When businesses see opportunity ahead, they invest, hire employees, purchase equipment, and strengthen their communities.

Economic optimism creates momentum. Those investments generate jobs, support local businesses, and help ensure our children and grandchildren can build their futures here in Alaska.

For the workers who keep Cook Inlet running, for Alaska's businesses and families, and for our state's future, the path forward is clear.

Pass a clean gasline bill. Build the pipeline. Secure Alaska's energy future.

• Jeff Epperheimer is president and co-owner of Epperheimer Inc., a family-owned industrial service contractor founded in Kenai that has served Alaska since 1980. He serves on the Kenai Peninsula Borough Planning Commission and is a member of The Alaska Support Industry Alliance, a group of natural resource industry stakeholders advocating for the Alaska LNG Project.