A long-awaited pipeline project could provide Alaska with cheaper natural gas than importing it from other nations, according to a new report.

The interim study, commissioned by the Alaska Gasline Development Corp. (AGDC), found that a pipeline connecting the state's North Slope oil and gas fields to its interior could deliver gas at a cost of between $2 and $13 per million British thermal units (MMBtu). 

This is significantly cheaper than the estimated cost of imported gas, which could range from $10 to $14 per MMBtu.

The report also highlighted the growing need for a new gas supply in Alaska as the state's Cook Inlet gas field, which currently provides electricity and heat to the Anchorage region, is expected to be depleted by 2035.

Alaska's congressional delegation has long supported the pipeline project, arguing that it would provide cheaper gas, create jobs, and boost the state's economy. However, the project has faced numerous challenges over the years, including high costs and environmental concerns.

AGDC, an independent corporation created by the state, has been working to develop a larger LNG project that would include the pipeline. The company is currently reviewing the Wood Mackenzie analysis and considering next steps.