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.
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.
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.