Alaska Gasline Development Corporation Signs Agreement with Glenfarne Alaska LNG

Alaska Gasline Development Corporation (AGDC) has signed binding project development agreements with Glenfarne Alaska LNG, an affiliate of Glenfarne Group, for the latter to become the majority owner of a liquefied natural gas (LNG) export project in Alaska and lead its development to construction.

Under the deal, Glenfarne is set to acquire AGDC’s 75% interest in 8 Star Alaska, its subsidiary created to hold and manage all Alaska LNG project assets. This will enable the U.S. player to become the lead developer and spearhead all remaining development work of Alaska LNG from front-end engineering and design (FEED) through to a final investment decision (FID).

Since the State of Alaska will stay on as a 25% partner in 8 Star Alaska, it will have the option to invest up to 25 % in any or all of the three 8 Star Alaska subprojects. These entail an 807-mile pipeline, the 20 mtpa LNG export terminal in Nikiski, Alaska, and a North Slope-based carbon capture plant to remove and store 7 million tons of carbon dioxide annually.

Alaska Governor Mike Dunleavy said: “Alaska has made a significant investment to develop Alaska LNG to the point where we can engage Glenfarne, a well-qualified industry leader, to bring this great project to the finish line. Alaska LNG will strengthen the U.S. geostrategic position in the North Pacific, provide vital energy security for our residents, our military bases, our businesses, and our Asian allies, and unlock billions in economic benefit at home and abroad.”

Glenfarne came on board the Alaska LNG project as a private partner in January 2025. This enabled the project to move forward after ten years of design and permitting work. According to the U.S. firm, this was preceded by a letter of intent executed with AGDC in June 2024 and an exclusive term sheet in December 2024.

Glenfarne Chief Executive Officer and Founder, Brendan Duval, noted: “Alaska LNG will provide desperately needed energy security and natural gas cost savings for Alaskans and give Glenfarne unmatched flexibility to simultaneously serve LNG markets in both Asia and Europe through our three LNG projects. Glenfarne strongly believes in the benefit of partnering with the communities where we work, and we are already building our Alaska team to bring Alaska LNG to life.”

The Alaska LNG project intends to use what the developers say are clean, energy-efficient, and safe production methods to deliver a stable supply of natural gas for commercialization and in-state distribution. The project is expected to deliver an average of about 3.5 billion cubic feet of gas per day, much of it for international markets.

The gas will be sourced from Prudhoe Bay and Point Thomson fields and transported to the liquefaction facility located in Nikiski. The plant is set to include three LNG trains, two 240,000 cubic meter storage tanks, terminal facilities, and marine services, as well as two loading berths to accommodate LNG carriers up to 217,000 cubic meters (Q-Flex).

The day President Donald Trump took office, an executive order instructing the federal government to maximize the development and production of natural resources in Alaska was issued. This includes the Alaska LNG project, due to its “critical national importance” and “economic and national security benefits.”

Another Alaskan LNG terminal, Kenai LNG, recently got a new owner, who plans to repurpose the existing assets to enable delivery of additional natural gas supplies as early as 2026, with full-scale operations starting as early as 2028.