An Alaska-based gas utility received tentative approval from the states government on July 23 to build a $56.6 million pipeline extension to import LNG into the Cook Inlet basin, an area that faces a local gas supply shortage.

The state gave Alaska Pipeline Co., an affiliate of Enstar Natural Gas, permission to move forward with its application to build, according to the filed decision. The 16-mile line will be connected to a terminal at Port Mackenzie, near Anchorage — an area that will be unable to meet its natural gas demands by 2025, Enstar told state regulators.

Enstar made the request with regulators in May 2024. The company described the project as precautionary and said the region needs a variety of options for a stable natural gas supply.