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In January this year, Glenfarne confirmed it had entered into an exclusive agreement with AGDC for the development of the Alaska LNG project, including the Alaska export facility, pipeline, and a carbon capture facility,
AGDC and Glenfarne executed a letter of intent in June 2024 and an exclusive term sheet in December 2024 in advance of this binding agreement.
Glenfarne announced the signing of definitive agreements in a statement on Friday under which its unit Glenfarne Alaska LNG becomes the majority owner of Alaska LNG, the sole federally permitted LNG export project on the US Pacific Coast.
Alaska LNG is designed to deliver North Slope natural gas to Alaskans and Alaska utilities and export up to 20 million tonnes of LNG per year (mtpa).
75 percent
Under the agreement, AGDC is divesting 75 percent of 8 Star Alaska, a subsidiary AGDC created to hold and manage all Alaska LNG project assets, to Glenfarne.
Glenfarne said it assumes the role of Alaska LNG’s lead developer and will lead all remaining development work of Alaska LNG from front-end engineering and design (FEED) through to a final investment decision (FID).
AGDC remains a 25 percent owner of 8 Star Alaska and a key partner to Glenfarne on the project, it said.
Alaska LNG’s three subprojects are an 807-mile 42-inch pipeline, the 20 mtpa LNG export terminal in Nikiski, Alaska, and a North Slope-based carbon capture plant to remove and safely store 7 million tons of carbon dioxide annually.
Pipeline FID in 2025
Glefarne is targeting a final decision on the pipeline project in 2025.
In light of steadily declining gas production from Cook Inlet, which has historically been Alaska’s primary in-state natural gas basin, phase one of the project will kick off immediately, prioritizing the development and final investment decision of the pipeline infrastructure needed to deliver North Slope gas to Alaskans as rapidly as possible, Glenfarne said.
Following a successful FID, Alaska will retain a 25 percent share in 8 Star Alaska and have the option to invest up to 25 percent in any or all of the three 8 Star Alaska subprojects, it said.
Glenfarne CEO and founder Brendan Duval said Glenfarne’s financial, project management, and commercial expertise is “well matched to lead this vital project forward.”
“Alaska LNG will provide desperately needed energy security and natural gas cost savings for Alaskans and give Glenfarne unmatched flexibility to simultaneously serve LNG markets in both Asia and Europe through our three LNG projects. Glenfarne strongly believes in the benefit of partnering with the communities where we work, and we are already building our Alaska team to bring Alaska LNG to life,” he said.
Market interest
Taiwan’s CPC Corp just signed a letter of intent with AGDC to buy LNG and invest in the planned Alaska LNG project.
AGDC recently said that market interest in Alaska LNG continues to accelerate “rapidly” following the agreement with Glenfarne and President Trump’s executive order identifying Alaska LNG as a national priority.
Besides Taiwan, Japan, the Philippines, and South Korea may be interested in buying LNG from Alaska.
Shipping LNG from Alaska to Asian countries would take less time and effort compared to US Gulf Coast LNG export plants, as LNG carriers would not need to pass through the Panama Canal.