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Earlier this year, Glenfarne signed definitive agreements with state-owned Alaska Gasline Development Corporation to become the majority owner of the giant Alaska LNG export project.
The project is designed to deliver North Slope natural gas to Alaskans and Alaska utilities and export up to 20 million tonnes of LNG per year.
Alaska LNG’s three subprojects include 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 store seven million tons of carbon dioxide annually.
FID in 2025
Glenfarne Alaska LNG, a subsidiary of Glenfarne, awarded the pipeline contract to Worley.
According to a statement by Glenfarne, this work has already started and will utilize and supplement the extensive package of previously completed engineering work, and update the cost of the pipeline.
The Alaska LNG pipeline is capable of transporting enough natural gas to meet both Alaska’s domestic needs and supply the full 20 mtpa Alaska LNG export facility.
Also, the pipeline will be constructed in two phases.
Phase One will deliver natural gas approximately 765 miles from the North Slope to the Anchorage region. Phase Two adds compression equipment and approximately 42 miles of pipeline under Cook Inlet to the Alaska LNG Export Facility in Nikiski and will be constructed concurrently with the LNG export facility.
Glenfarne anticipates a final investment decision on the Alaska LNG pipeline in 2025.
Besides this contract, Worley has also been selected as the preferred engineering firm for the Cook Inlet Gateway LNG import terminal and project delivery advisor to Glenfarne across the Alaska LNG projects, Glenfarne said.
Concurrently with the final engineering work, Glenfarne has launched a strategic partner selection process to partner with global companies that support Glenfarne’s execution efforts and have complementary expertise to help deliver the Alaska LNG project, it said.
“Glenfarne is pushing Alaska LNG forward with expediency engaging prospective strategic partners. We are particularly proud to be expanding our relationship with Worley to Alaska LNG from our existing partnership on the Texas LNG project,” Brendan Duval, CEO and founder of Glenfarne, said.
Market interest
AGDC said in March 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.
In March, Taiwan’s CPC Corp signed a letter of intent with AGDC to buy LNG and invest in the planned Alaska LNG project.
Thailand’s PTT and Egco will also engage in further discussions to potentially participate in the development and buy volumes from the planned Alaska LNG project, according to Thailand’s Ministry of Energy.
Besides Taiwan and Thailand, 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.