Alaska Gasline Development Corporation (AGDC) and Glenfarne Group have reached an agreement for Glenfarne to develop the Alaska LNG Project, with a final investment decision expected before the end of the year. Glenfarne will take on a majority stake in AGDC subsidiary 8 Star Alaska, with a 75% ownership. The project includes an 807-mile pipeline, an LNG export terminal, and a carbon capture plant.
The project has been divided into multiple phases, with an estimated cost of $44 billion. Phase one, the pipeline, is projected to cost $10.8 billion and will address the declining gas production in Alaska. An agreement was announced in Tokyo, Japan, involving Alaska Governor Mike Dunleavy and AGDC President Frank Richards.
The project has cleared legal challenges, obtained permits, and has support from the federal government. While Asian countries have shown interest in purchasing gas from the project, no binding agreements have been signed yet. The project is expected to bring jobs, revenue, and gas to Alaskans in the near term. Funding will come from private sector dollars with the support of a federal loan guarantee.
The next steps for the project include a front-end engineering and design study, expected to be completed by the third quarter of 2025, before a final investment decision in the fourth quarter. Alaska legislators have expressed optimism and excitement for the project, seeing it as a significant step towards the state’s energy future. This development is seen as a victory for Alaskans, bringing lower costs, new revenue, and job opportunities.
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