Glenfarne Alaska LNG, an affiliate of Glenfarne Group, and the Alaska Gasline Development Corp (AGDC) have signed definitive agreements for the former to become majority owner of Alaska LNG.
Alaska LNG the sole US federally permitted LNG export project on the US Pacific Coast.
It is being developed to deliver North Slope natural gas to Alaskans and Alaska utilities and export up to 20 mill tonnes of LNG per year.
Under the agreement, AGDC is divesting 75% of 8 Star Alaska, a subsidiary AGDC created to hold and manage all of Alaska LNG project’s assets, to Glenfarne.
Glenfarne will assume the role of Alaska LNG’s lead developer and will lead all remaining development work from front-end engineering and design (FEED) through to a final investment decision (FID).
AGDC remains a 25% owner of 8 Star Alaska and a key partner with Glenfarne on the project.
Alaska LNG’s three sub-projects are an 807 mile 42 inch pipeline, the 20 mill tonnes per annum LNG export terminal at Nikiski, Alaska, and a North Slope-based carbon capture plant to remove and safely store 7 mill tonnes of carbon dioxide annually.
In light of steadily declining gas production from Cook Inlet, which has historically been Alaska’s primary natural gas basin, phase one of the project will kick off immediately, prioritising the development and FID of the pipeline infrastructure needed to deliver North Slope gas to Alaskans as quickly as possible, Glenfarne said.
Following a successful FID, the State of Alaska will retain a 25% share in 8 Star Alaska and have the option to invest up to 25% in any or all of the three 8 Star Alaska sub-projects.
Alaska Governor, Mike Dunleavy, said, “Today is a historic day for Alaska. Oil was discovered in Prudhoe Bay almost exactly 57 years ago and since then Alaskans have never given up on finding a way to also benefit from our North Slope natural gas.
“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 US 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,” he said.
Glenfarne CEO and Founder, Brendan Duval, added; “Glenfarne’s financial, project management, and commercial expertise is well matched to lead this vital project forward.
“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,” he said.
AGDC President, Frank Richards, commented, “I’m incredibly proud of the ADGC team that has worked tirelessly over the past 11 years to develop Alaska LNG.
“Through persistence, hard work, and the determination that characterises the Alaska spirit, Alaska LNG has successfully advanced through the design and permitting gauntlet to ignite global market momentum and attract a world class developer.
“Alaska LNG will ensure a brighter future for generations of Alaskans and I look forward to working with Glenfarne as they lead Alaska LNG forward,” he concluded.
AGDC and Glenfarne signed a letter of intent in June, 2024 and an exclusive term sheet in December of that year in advance of this binding agreement.
Glenfarne is also the owner of Texas LNG, which has recently announced that its capacity is fully sold out and Kiewit has joined the project as its EPC contractor with a FID due later this year.
Glenfarne’s affiliate is the largest importer of LNG into Colombia and owns Magnolia LNG, a late-stage LNG export project located in Lake Charles, Louisiana.
In addition to LNG, Glenfarne owns 50 operating assets in the energy sector across five countries.
Together with Alaska LNG, Glenfarne’s permitted LNG portfolio totals 32.8 mill tonnes per annum of capacity under development, the company claimed.
