The Alaska Oil and Gas Association said Tuesday it expects to report a $1 billion increase in revenue for the first quarter of 2019 from the liquefied natural gas plant shutdown in Fairbanks, which will be the biggest single expense for the industry in Alaska.
Alaska Oil and Energy Minister Scott Johnson said the shutdown has helped fuel the state’s economic recovery and helped fuel job growth.
The plant shutdown will also be a catalyst for a strong rebound in natural gas prices in the state, Johnson said.
The oil and gas industry reported a $3.4 billion net profit in the first three months of the year, which includes $4.4 million from the shutdown, according to the Alaska Association of Oil and Natural Gas.
The industry had been expecting a $5 billion profit for the year.
The Fairbanks plant shut down after about 5,000 people were evacuated because of a gas leak from a pipeline.
It was built in the 1970s.