Alaska Gasline Development Corporation Signs Framework Agreement with Glenfarne Group for Alaska LNG Project

Alaska Gasline Development Corporation (AGDC), the developer of a liquefied natural gas (LNG) project in Alaska, has entered into an exclusive framework agreement with energy company Glenfarne Group to lead and fund the development of the project. This agreement comes after years of planning and permitting work.

AGDC President Frank Richards and Alaskan Governor Mike Dunleavy made the announcement at an energy conference in Anchorage. The agreement includes the development of the Alaska LNG project, the Arctic Carbon Capture plant on the North Slope, the LNG export facility in Nikiski, and the pipeline to deliver North Slope natural gas to Alaskans.

“The Alaska LNG project will allow Alaska to deliver natural gas from a proven energy source that markets demand. Alaska LNG uniquely offers superior economics, close proximity to Asian markets driving LNG demand growth, and the ability to eliminate up to 2.3 billion tons of global emissions by replacing dirtier fuel sources with clean burning Alaska natural gas,” said Richards.

AGDC and Glenfarne are working on creating legally binding development agreements, with a formal announcement expected in the coming months. This partnership signifies a significant step forward for the Alaska LNG project.

Approval of Letter of Credit by Alaska’s Development Financing Authority

In December 2024, the Alaska Industrial Development and Export Authority (AIDEA) approved a resolution to advance the development of the Alaska Natural Gas Pipeline Phase 1, paving the way for private investment in the project. This approval will allow AGDC to move forward with the next phase of development.

AGDC released a statement regarding AIDEA’s decision, highlighting the importance of private funding for the project. The letter of credit will unlock up to $50 million in private investment needed to move the project through the next development stage.

Project Overview

The Alaska LNG project aims to deliver a stable supply of natural gas for commercialization and in-state distribution. The project will source gas from the Prudhoe Bay and Point Thomson fields, with a liquefaction facility in Nikiski processing up to 20 million tons of LNG per year.

The mainline pipeline, spanning 807 miles, will transport natural gas from the North Slope to Southcentral Alaska, with a daily capacity of 3.3 billion cubic feet. The project also includes a gas treatment plant in Prudhoe Bay to remove impurities from the natural gas.

Economic Viability Assessment

Wood Mackenzie conducted an economic viability assessment of the Alaska LNG project, presenting the findings to the Alaska State Legislature. Governor Dunleavy directed AGDC to create a phased construction strategy for the project, focusing on resolving the Cook Inlet energy crisis.

AGDC is working towards completing the front end engineering design (FEED) study required for a final investment decision (FID) for Phase 1 of the project. The economic assessment will play a crucial role in determining the project’s viability.

Environmental Backlash

Despite progress on the project, environmental groups like Greenpeace and the Center for Biological Diversity have raised concerns about the environmental impact of the Alaska LNG project. They have criticized the project for potential carbon emissions and environmental harm.

The project has faced legal challenges and opposition from environmental organizations, citing concerns about greenhouse gas emissions and climate impact. The project’s approval has sparked debate about its environmental consequences and the need for rigorous oversight.

As the Alaska LNG project moves forward, balancing economic development with environmental sustainability will be a key challenge for stakeholders and regulators.