North Slope LNG Begins Supplying Fairbanks, Boosting Reliability for 3,600

Liquefied natural gas from the North Slope is now being delivered to Fairbanks, a shift intended to strengthen supply reliability for Interior Gas Utility’s 3,600 customers across the Interior. The change follows contracts signed in January 2023 and a series of operational steps that began with the first delivery on Oct. 9 and sustained runs that started Dec. 1.

Interior Gas Utility worked with North Slope producers and midstream companies to build the new supply chain. IGU signed agreements with Hilcorp to supply the gas, Harvest Midstream to process it into LNG, and Middle Fork Logistics to truck the fuel down the Dalton Highway in IGU-owned trailers. The utility now receives an average of five to six trucks per day into Fairbanks, each carrying about 14,000 gallons of LNG — a daily inflow that exceeds the area’s average consumption needs in many periods.

The move increases both throughput and buffer capacity. IGU General Manager Elena Sudduth said the utility has expanded its liquefaction and storage capabilities: "We have increased our ability to bring more LNG in, and with our already increased storage capacity, it’s only going to get better." Storage across Fairbanks and North Pole facilities totals 5.5 million gallons, giving the utility room to pause deliveries and draw down reserves as needed between refill cycles.

Operational context matters for winter reliability. IGU typically distributes about 100,000 gallons a day during winter, and as little as 20,000 gallons a day in summer. The utility reached an all-time daily distribution record of 138,000 gallons on Jan. 8, underscoring peak-season stress on supply systems. Despite the supply source switch, gas prices set by IGU’s Board of Directors — adjusted each July 1 for the following fiscal year — were not affected in 2025.

The supply shift also supports ongoing customer growth in the borough. The number of people served by IGU has tripled in six years as residents use a borough program to convert home heating systems to natural gas and as IGU extends mainline infrastructure into new neighborhoods. North Pole is the fastest-growing service area; Sudduth noted recent construction progress: "In the last two years, we’ve installed about 17 miles of additional mainline, enabling us to have access to a lot more, more potential consumers."

IGU marked the North Slope deliveries with a community event in Fairbanks that drew residents and political officials. For customers, the immediate benefit is steadier fuel access and larger reserves to ride out delivery pauses. Looking ahead, the new supply chain should give Interior households greater confidence in winter heat reliability while policymakers and the utility monitor storage cycles, delivery cadence, and the next price-setting review on July 1.