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The MOU was signed by the presidents of the Building and Construction Trades Council of Southcentral Alaska, the Fairbanks Building and Construction Trades Council, the Alaska Petroleum Joint Crafts Council, and Glenfarne’s unit 8 Star Alaska, according to a statement by Glenfarne.
Glenfrane noted that the Building Trades Councils are made up of 18 separate unions and are affiliated with the Alaska AFL-CIO, which represents 50,000 men and women. The unions partner with construction contractors from the North Slope to Kodiak.
“The agreement reflects the shared commitment to Alaska first. Alaska LNG will generate exceptional opportunities for Alaska workers and contractors in the development of one of the largest energy infrastructure projects in Alaska’s history,” the company said.
12,000 jobs
The MoU provides a framework to negotiate project labor agreements covering major construction activities associated with Alaska LNG.
Glenfarne said it addresses labor stability, workforce availability, and collaboration between the Building Trades and project contractors throughout development and construction.
The MoU covers future project labor agreements associated with Phase One camp construction, camp operations, and logistics, as well as major Phase Two facilities including the LNG export facilities, gas treatment facilities, compressor stations, module installation, transportation logistics, and related site work.
Pipeline installation and construction activities, including pipeline right-of-way work, pipe hauling, gravel processing, access roads, pipe storage yards, and mainline pipeline construction, are anticipated to be governed by a separate project labor agreement currently under development with the pipeline construction trades, Gllenfarne said.
According to the firm, Alaska LNG is expected to create 12,000 construction jobs, provide natural gas for Alaskans, generate revenue for the state, and position Alaska as a competitive global LNG supplier.
The project is also estimated to create up to 1,000 long-term jobs in operations, while economic research demonstrates that each direct job in the oil and gas industry supports 15 indirect jobs.
Glenfarne, which became the majority owner of the Alaska LNG project last year, is developing Alaska LNG in two financially independent phases to accelerate project execution.
Phase One consists of a 739-mile (1,287 km) pipeline, while Phase Two of the project will add the LNG liquefaction terminal in Nikiski and related infrastructure to export 20 mtpa of LNG.
The company recently revealed that it expects both phases to cost up to $54.5 billion.
Tax cut
In a related development, the Alaska House of Representatives passed legislation (HB 381) on Friday, establishing a volumetric tax structure for the proposed Alaska LNG project.
“The legislation replaces the traditional property tax system with a predictable, volume-based tax framework for natural gas transported through the Alaska LNG pipeline, helping strengthen the project’s competitiveness while providing long-term certainty for communities, investors and project partners,” Governor Mike Dunleavy said in a statement.
The bill now advances to the Alaska Senate for consideration.