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A New York-based company pursuing LNG export projects in the Lower 48 said this week that it has a deal with the Alaska gasline agency to develop the state’s long-sought $44 billion Alaska LNG project.
“Glenfarne confirms it has entered into an exclusive agreement with the Alaska Gasline Development Corp. for the development of the Alaska LNG project, including the Alaska export facility, pipeline, and a carbon capture facility,” a spokesperson with Glenfarne Energy Transition said in an email Thursday.
The deal is an important development for the Alaska LNG project, in the works for more than a decade. Board members for the project last year had suggested shutting the project down, if enough progress was not made by now.
The state-owned project is the latest iteration in decades of attempts in Alaska to build a project that would tap into the vast quantities of natural gas contained on the North Slope.
Costs, and the project’s huge facilities, have long stymied efforts to build it. Alaska LNG envisions development of an 800-mile pipeline delivering natural gas from the North Slope. The gas would be liquefied in Nikiski on the Kenai Peninsula and exported to Asian markets in oceangoing tankers.
Glenfarne’s statement follows a statement on Monday from the head of the Alaska Gasline Development Corp. was in secret talks with an unnamed partner to lead and fund development of the project.
Frank Richards, president of the gasline agency, said in the announcement that it had reached an “exclusive framework agreement with a qualified energy company.”
“The next step is for both parties to create legally binding development agreements that will move the project forward,” he said. “The company involved brings extensive US and international natural gas and LNG experience to bear to this project.”
Richards said he expected “a formal announcement of the definitive agreements in the next few months.”
Richards declined to share details of the potential agreement. A spokesperson with the agency, reached Thursday, did not provide additional details.
Glenfarne, founded in 2011, develops, owns and operates energy and infrastructure projects. It sees LNG as a bridge to renewables and other low-carbon energy sources, according to Brendan Duval, the company’s co-founder.
It’s working to develop LNG projects in Texas and Louisiana.
The Texas LNG project and the Magnolia LNG project in Louisiana have not reached the critical stage of a final investment decision, when a company has agreed to fund project costs and move to construction.
A representative with Glenfarne declined to comment on the Alaska agreement on Thursday.
The Alaska LNG project is also far from that pivotal moment that will determine how the massive project would be paid for.
Glenfarne’s statement on Thursday said it is also working on an LNG import project with Enstar Natural Gas, the natural gas utility for Southcentral Alaska.
“As well, Glenfarne and ENSTAR Natural Gas Company have entered into an exclusive agreement to advance an LNG import project utilizing the Alaska LNG export site,” Glenfarne said.
The Alaska Landmine and the Peninsula Clarion earlier this week reported on the Glenfarne statement.
The Alaska LNG project received a $50 million line of credit from another state agency last month that helped it secure the framework agreement, Richards said Monday.
The Alaska Industrial Development and Export Authority in December agreed to commit $50 million as an insurance policy to allow Glenfarne to spend up to $50 million to help develop the project by funding engineering and design studies needed for an initial phase of the project. Gov. Mike Dunleavy has asked the Alaska Legislature to provide the $50 million to AIDEA in support of the Alaska LNG project.
The state development agency would make the $50 million payment if the Alaska LNG project does not move ahead to construction.