Home Fossil Energy Alaska’s LNG project moves closer to reality after 10 years in the making, with Glenfarne as private investor
Alaska Gasline Development Corporation (AGDC), the developer of a liquefied natural gas (LNG) project in the U.S. northernmost state, has signed a framework agreement with compatriot energy player Glenfarne Group for the latter to privately lead and fund the development of the project.
Rendering of the liquefaction facility in Nikiski; Source: Alaska LNG
On January 6, 2025, AGDC President Frank Richards and Alaskan Governor Mike Dunleavy hosted an energy conference in Anchorage, announcing an exclusive framework agreement to develop Alaska LNG following ten years of design and permitting work.
“Today, after 10 years of planning, engineering, and permitting, I’m announcing that AGDC has reached an exclusive framework agreement with a qualified energy company to privately lead and fund the development of the Alaska LNG project, including the Arctic Carbon Capture plant on the North Slope. The LNG export facility in Nikiski and the pipeline, which will transect the state and deliver North Slope natural gas to Alaskans,” said Richards.
Richards noted that the terms of the framework agreement have been negotiated and the next step is for both parties to create legally binding development agreements that will move the project forward. He noted that a formal announcement of the definitive agreements is expected within the next few months.
On that same day, outgoing President Biden disclosed plans to protect areas of the United States, including portions of the Northern Bering Sea in Alaska, from future oil and natural gas leasing. President-elect Donald Trump responded by vowing to undo the drilling ban.
Related Article
“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,” added Richards.
While the company’s name was initially not disclosed, on January 10, 2024, Offshore Energy reached out to AGDC, whose spokesperson confirmed that the company in question is Glenfarne.
Furthermore, a Glenfarne spokesperson told Offshore Energy: “Glenfarne confirms it has entered into an exclusive agreement with the Alaska Gasline Development Corporation (“AGDC”) for the development of the Alaska LNG project, including the Alaska Export Facility, Pipeline, and a Carbon Capture facility. 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 is developing a 4-mtpa project in Texas’ Port of Brownsville. Kiewit was recently selected to lead the engineering, procurement, and construction (EPC) for the proposed terminal. The two will work on completing the pre-final investment decision (FID) engineering required for the project to proceed to an FID.