Alaska Governor Mike Dunleavy recently announced that the state’s $44 billion liquefied natural gas (LNG) pipeline project is attracting significant investment interest from Asia. During a recent trip to Taiwan, Thailand, South Korea, and Japan, the governor noted strong interest in purchasing gas and investing in the pipeline network. The Alaska LNG project consists of over 800 miles of pipeline intended to transport 3.5 billion cubic feet of natural gas per day from the North Slope to Nikiski in southcentral Alaska, with plans to export much of this gas to North Pacific markets.
Taiwan’s state-owned CPC Corporation signed a letter of intent for six million tons of gas, marking the largest single offtake deal in LNG history. Negotiations in Thailand, South Korea, and Japan also included discussions of potential investments in the pipeline itself. Glenfarne Energy Transition acquired majority ownership and lead development of the project in March, aiming to make final investment decisions by August or September.
Governor Dunleavy highlighted the economic benefits of the project, projecting 60 years of profitability and providing essential fuel to military installations and state utilities as Cook Inlet gas fields have seen a decline in recent years. He also suggested that the project could stimulate future factory growth and data farm expansion in Alaska.
The Alaska LNG project, with all necessary permits and right-of-ways secured, is expected to take two and a half years to install. The project is a significant development in Alaska’s economy, which relies on oil and gas in addition to tourism, fishing, forestry, and mining.
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