Glenfarne expects Alaska LNG project to cost up to $54.5 billion

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.

Glenfarne Alaska President Adam Prestidge provided an update and a cost estimate of the project to the Senate Finance Committee last week.

According to a presentation by Prestidge, Glenfarne estimates the project could cost between $44.5 billion and $54.5 billion.

The first phase of the project, which includes the pipeline, is expected to cost between $13.2 and $16.9 billion.

Moreover, the second phase of the project, which includes the 20 mtpa LNG plant in Nikiski and a gas treatment plant, is expected to cost between $31.3 billion and $37.6 billion.

The LNG plant itself is expected to cost between $23.6 billion and $28.4 billion, the presentation shows.

“This is an expensive project. However, we are confident that it can be economic,” Prestidge said.

“These numbers do reflect the challenge of a project that has been decades in development. And they underscored the need for tax arrangement that supports the project advancing in its development,” he said.