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“Glenfarne confirms it has 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,” a spokesperson from Glenfarne Energy Transition, a unit of Glenfarne, said.
“As well, Glenfarne and Enstar Natural Gas Company have entered into an exclusive agreement to advance an LNG import project utilizing the Alaska LNG export site,” the spokesperson said.
Enstar Natural Gas is a utility in Alaska that delivers gas to residential, commercial, and industrial customers, while Glenfarne is developing the 4 mtpa Texas LNG project in the port of Brownsville.
The company’s unit, Texas LNG, is currently working to make a final investment decision on the project.
Glenfarne is also the sole owner and developer of the 8.8 mtpa Magnolia LNG project in Lake Charles, Louisiana.
Binding deal
AGDC president Frank Richards revealed during a press conference on Monday that AGDC signed a framework agreement with a private energy firm to lead and develop the giant LNG project.
However, he did not reveal the name of the company.
The Alaska Landmine was the first to report that Glenfarne is the energy firm in question.
According to Richards, the next step is for both parties to create binding agreements that will move the project forward.
“I expect the formal announcement of the definitive agreements within the next few months,” he said.
Once this is finalized, the partners will work on the final development stage, known as front-end engineering and design (FEED).
Richards said FEED will provide the information needed to undertake a final investment decision to initiate the construction of the privately-led $44 billion project.
The announcement comes one month after AGDC received state support to develop the first phase of the project which includes the construction of a pipeline.
AGDC said that the Alaska Industrial Development and Export Authority (AIDEA) has approved a resolution to negotiate a letter of credit with AGDC to backstop the FEED costs on Alaska LNG Phase 1, the in-state pipeline portion of Alaska LNG.
20 mtpa
Alaska LNG is a federally authorized integrated natural gas and LNG export project under development to deliver natural gas within Alaska and export up to 20 million tonnes per annum of LNG.
The facility is expected to have three LNG trains, two 240,000-cbm storage tanks, and two jetties to accommodate LNG carriers up to 217,000 cbm.
AGDC received all major federal permits and authorizations for Alaska LNG.
It secured approval from the US FERC to construct the project back in May 2020.
The company previously said that it is pursuing an option to phase Alaska LNG by prioritizing the in-state pipeline portion of Alaska LNG consisting of the 42-inch pipeline from the North Slope to Southcentral Alaska to provide natural gas to avert the looming energy crisis facing the region.
Phase 1 of Alaska LNG does not involve construction of an LNG plant, and as a result has a materially lower capex requirement and construction timeframe, allowing gas transportation as early as 2029, it said.
In June 2024, AGDC and a unit of London-based Pantheon Resources signed a gas sales precedent agreement, which includes, among other conditions, a requirement for the Alaska LNG project to reach FID.