Golden Valley Electric Association has cleared a hurdle in its push to truck North Slope natural gas to Fairbanks. The electric utility has secured a gas supply contract with BP. Under the deal, Golden Valley can purchase up to 23 billion cubic feet of gas annually for 20 years. It’s a key part of a project being forwarded in partnership with the Flint Hills Refinery. GVEA spokeswoman Cassandra Cerny says it’s aimed at replacing oil with gas fired energy.
A decision on whether or not to move forward with financing and construction will be up to the Golden Valley Electric Board and Flint Hills. GVEA and the refinery have kicked in a million dollars apiece to study the gas trucking project. The state has provided $3.75 million in funding.
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