New Lead Developer Declines $50 Million Agreement for Alaska LNG Project
The proposed Alaska LNG pipeline project has a new lead developer, Frank Richards of the Alaska Gasline Development Corporation (AGDC), who has declined a $50 million backstop agreement with the Alaska Industrial Development and Export Authority. The new developer, New York-based Glenfarne Group, will seek private financing for the entire project.
Glenfarne became the majority stakeholder in the project after the AGDC board approved an agreement in late March. The company will fund all necessary front-end engineering and design (FEED) studies needed for the project, with a focus on the in-state pipeline segment.
AGDC retains a 25% stake in the project, with Glenfarne assuming 75% ownership of 8 Star Alaska, AGDC’s subsidiary managing the project’s assets. This partnership came after the AGDC sought funding for the FEED study and AIDEA approved a backstop in December.
The project consists of an 800-mile pipeline, a carbon capture plant on the North Slope, and a liquefaction plant and export terminal on the Kenai Peninsula, each requiring a FEED study. The total estimated cost of these studies is $150 million, with Glenfarne expected to reach a final investment decision on the in-state portion by the end of the year.
The project still needs North Slope gas supply contracts, agreements with Railbelt utilities, and export contracts. Securing export agreements with Asian trading partners is a priority. Discussions are ongoing with other North Slope producers, while the Legislature will have final decision-making authority on any additional state investment in the project.
Richards emphasized the need for caution and thorough consideration of risks associated with the project. The goal is to commercialize North Slope resources for Alaskans at a lower cost.
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