Donlin Gold mine a potential new Cook Inlet gas buyer

Though a proposed gold mine would be more than 200 miles from the Kenai Peninsula, it would affect the region as a new buyer in Cook Inlet’s natural gas market, which has suffered from relatively low and seasonal gas demand.

On Monday the parent companies of the Donlin Gold project — Barrick Gold Corporation and NovaGold Resources — announced that the Army Corps of Engineers had given it permits under the Clean Water Act and the Rivers and Harbors Act. In addition, the U.S. Bureau of Land Management offered leases of the federal land through which the companies plan to build a 316-mile underground natural gas pipeline that would deliver energy during the project’s 27-year planned life.

The mine, about 10 miles north of Crooked Creek village in the Kuskokwim River area, would be powered by a 227 megawatt-capacity power plant. The pipeline to fuel it would branch from Cook Inlet’s existing natural gas pipeline system north of Beluga on the inlet’s west side. It would take about 10.8 billion cubic feet of gas per year, according to its environmental impact statement.

“We don’t have a supplier lined up at the moment, but we’ve talked to various producers about supplying gas to us, so we’re pretty confident we’ll be able to secure what we need from Cook Inlet,” Donlin Gold spokesperson Kurt Parkan said.

Gas deals remain far in the future — Donlin Gold still has more permits to receive and engineering details to work out, Parkan said.

The mine would be a significant addition to the demand for Cook Inlet natural gas, potentially encouraging the region’s hydrocarbon extractors to invest in more exploration and drilling. Presently, the region’s top gas consumer is ENSTAR, which distributes about 33 billion cubic feet of gas per year to mostly residential and small commercial customers.

Because much of this gas is used for heating, ENSTAR’s need for gas is higher in the winter and lower in the summer, making its demand a moving target. In the past, a much greater demand came from large industrial gas users that used gas steadily throughout the year, evening out the peaks and valleys created by ENSTAR’s seasonal needs. These included the former ConocoPhillips liquefied natural gas terminal — which was permitted to export a total 40 billion cubic feet of gas during its final four-year U.S Department of Energy license — and the Agrium fertilizer plant — which consumed about 55 billion cubic feet per year before closing in 2007.

“When ENSTAR’s just a blip on the radar, it’s better for everyone,” Hobson said. “The seasonal fluctuations, we like to avoid those to the extent that we can.”

The mine proposal’s effect on gas prices remains speculative, Hobson said.

“If you get into a situation where there’s an increased demand, and so the producers restart some exploration or production activities, then perhaps in that event we might find ourselves in an oversupply if there’s a big find that could only happen when we’re looking for large quantities of gas to support Donlin, or any industrial customer,” Hobson said. “If we get into a situation of oversupply, we could reasonably expect to see lower gas prices.”

More in News

Hunter Kirby holds up the hatchery king salmon he bagged during the one-day youth fishery on the Ninilchik River on Wednesday, June 7, 2023 in Ninilchik, Alaska. Photo by Mike Booz
Ninilchik River closed to sport fishing

The closure is in effect from June 23 through July 15.

Señor Panchos in Soldotna, Alaska, is closed on Wednesday, June 4, 2025. (Jake Dye/Peninsula Clarion)
Soldotna restaurant owner remains in ICE custody; federal charges dropped

Francisco Rodriguez-Rincon was accused of being in the country illegally and falsely claiming citizenship on a driver’s license application.

Brent Johnson speaks during a meeting of the Kenai Peninsula Borough Assembly in Soldotna, Alaska, on Tuesday, April 1, 2025. (Jake Dye/Peninsula Clarion)
Borough to provide maximum funding for school district

The Kenai Peninsula Borough School District will receive less money from the state this year than it did last year.

Jake Dye/Peninsula Clarion
Pool manager and swim coach Will Hubler leads a treading water exercise at Kenai Central High School on Tuesday.
Pools, theaters, libraries in jeopardy as cuts loom

The district issued “notices of non-retention” to all its pool managers, library aides and theater technicians.

A sockeye salmon is pictured in Kenai, Alaska, on Tuesday, July 25, 2023. (Jake Dye/Peninsula Clarion)
Fishing slow on Russian River, improving on Kenai

Northern Kenai fishing report for Tuesday, June 17.

Josiah Kelly, right, appears for a superior court arraignment at the Kenai Courthouse in Kenai, Alaska, on Tuesday, Nov. 26, 2024. (Jake Dye/Peninsula Clarion)
Anchor Point man accepts plea deal for November shootings

Buildings operated by a local health clinic and an addiction recovery nonprofit were targeted.

A demonstrator holds up a sign during the “No Kings” protest on Saturday, June 14, 2025, at WKFL Park in Homer, Alaska. (Chloe Pleznac/Homer News)
Homer hits the streets to say ‘No Kings’

Around 700 gathered locally as part of a nationwide protest.

Brooklyn Coleman, right, staffs The Squeeze Squad lemonade stand during Lemonade Day in Soldotna, Alaska, on Saturday, June 14, 2025. (Jake Dye/Peninsula Clarion)
Kids learn business skills at annual Lemonade Day

Around 40 stands were strewn around Soldotna, Kenai, Nikiski and Sterling for the event.

Planes are showcased at the Kenai Air Fair in Kenai, Alaska, on Saturday, June 14, 2025. (Jake Dye/Peninsula Clarion)
Kenai fair shows off aircraft of all kinds

Cargo planes to helicopters were on display Saturday.

Most Read