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Why LNG?

Fairbanks is the second-largest city in Alaska and faces high heating costs as a result of being dependent on volatile-priced heating oil. Interior residents and businesses are facing winter utility bills that are often greater than their rent and/or mortgages. Natural gas is abundant, and readily available at a reasonable cost.

Project Goals

The IEP was developed with three primary goals:

  • Provide affordable energy to Interior Alaska customers as soon as possible.
  • After providing the Interior with natural gas, assure long-term access to natural gas and propane for all Alaskans
  • Use private-sector mechanisms as much as possible
Improving Air Quality

As a result of high-heating costs, many Interior residents have turned to heating their homes and businesses with wood, resulting in dangerously poor air quality.

The Clean Air Act requires the Environmental Protection Agency (EPA) to designate areas where air quality does not meet health-based standards for fine particle pollution. These standards are referred to as PM 2.5 (particulate matter that is 2.5 micrometers in diameter and smaller). Fairbanks is currently a non-attainment area for PM 2.5 and as a result the state risks losing federal transportation dollars.

Natural gas is clean burning. Comprised primarily of methane, the main products of the combustion of natural gas are carbon dioxide and water vapor, the same compounds we exhale when we breathe ( There are substantial potential health benefits for the Interior associated with switching to natural gas which also puts Fairbanks and North Pole on a path to meeting EPA air-quality standards. Cleaner, healthier air helps to eliminate hurdles for future growth and can promote economic development.

Increasing Demand for a Natural Gas Pipeline

The IEP is not only compatible with a natural gas pipeline, but complements a pipeline by creating greater initial demand. Trucking LNG provides an affordable energy option for the Fairbanks North Star Borough and incentives residents and businesses to convert to natural gas, building out a distribution system well in advance of a natural gas pipeline.

It is anticipated that the North Slope LNG plant will be re-deployable and able to serve adjusting demand after a natural gas pipeline is online.

LNG Safe Fuel Video