GVEA announces natural gas contract with BP
Golden Valley Electric Association is pleased to announce that it has entered into a natural gas supply contract with North Slope gas producer and Prudhoe Bay Unit operator, BP Exploration (Alaska) Inc. Under the contract, GVEA may purchase up to 23 billion cubic feet (Bcf) of natural gas each year for 20 years
Beyond meeting GVEA’s needs for electrical generation, the volume of natural gas available to GVEA under the contract is sufficient to meet both the immediate and long-term needs of Interior Alaska residents and businesses. This historic gas contract enables GVEA, as the aggregator, to supply enough natural gas to meet the needs of nearly 100,000 Interior residents for electrical generation and space heating
“In addition to satisfying our own electrical generation needs, we at GVEA recognized the opportunity and our responsibility to address the energy crisis facing Interior Alaska’s residents and businesses, in particular, the high cost of space heating,” said Cory Borgeson, GVEA Interim President & CEO. “BP’s willingness to work with GVEA to address Interior Alaska’s energy crisis is appreciated and is crucial to the long-term success of our communities.
The GVEA/BP gas supply contract is a cornerstone of the LNG trucking. “In the short-term, trucking LNG displaces oil-fired electric generation with lower cost natural gas and allows for the expansion of natural gas distribution infrastructure,” said Borgeson.