Institute of Social and Economic Research, University of Alaska Anchorage
Abstract
Could propane from the North Slope cut energy costs in Fairbanks and
other Interior communities that heat buildings or generate electricity
with fuel oil or naphtha? The Alaska Natural Gas Development Authority
(ANGDA) thinks it could.
That’s because a North Slope producer has agreed to sell ANGDA
propane for considerably less than what it might otherwise cost, if there
were a natural gas pipeline. Propane is a component of North Slope natural
gas—and right now there’s no way to get that gas to market.*
Naphtha and fuel oil, by comparison, are refined from oil—so their
prices are closely tied to the volatile price of crude oil. ANGDA hopes getting
a price break on propane could make it cheaper, at least until a pipeline
is built—and it asked ISER to analyze the potential effects of one idea.Alaska Natural Gas Development Authorit
