Group studies gas pipeline to Homer

Enstar Natural Gas, Unocal Corp. and Alaska Electric Generation and Transmission Inc., which is owned primarily by Homer Electric Association, have initiated a joint feasibility study for a natural gas pipeline to serve the southern Kenai Peninsula.

The pipeline, if it is built, would ran from

A pipeline from Kenai to Homer would be about 75 miles long and would cost about $45 million. If the study shows the project is feasible, construction could begin as early as 2002.

A memorandum of understanding signed between Unocal, Enstar and AEG&T, "is a way of formalizing our desire to work together and provides a framework for the project," said Norm Story, general manager of Homer Electric Association. 'The initial concept is for AEG&T to own the natural gas transmission line. Enstar would own and operate retail distribution spurs from the gas transmission line, and Unocal would be a shipper of gas on the system."

Homer Electric is a member-owned electric cooperative that distributes power to 26,000 customers on the southern Kenai Peninsula. Enstar distributes natural gas to 105,000 customers in Southcentral Alaska, including a portion of the Kenai Peninsula.

Unocal operates Cook Inlet oil production platforms and owns gas reserves on the Kenai Peninsula.