Alaska LNG Announces Pipeline Developments

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Written by Daniel Graeber for IIR Energy Intelligence (Sugar Land, Texas)

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Summary

Glenfarne tapped Worley and a handful of others to help develop a pipeline for the Alaska LNG facility. The first phase of operations focuses on domestic energy needs.

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Pipelines Coming

Glenfarne (New York City, New York), a developer behind the Alaska LNG project, said it tapped engineering firm Worley and others for assistance with the Phase 1 pipeline development.

Glenfarne said Worley (Sydney, Australia), under a provisional arrangement, will offer engineering, procurement and construction management services for Phase I development. Following a multi-round bidding process that included nearly 20 contactors, a handful of midstream companies, from Mas Tec (Coral Gables, Fla.) to Quanta Services (Houston, Texas), will support construction.

"This is about progressing from planning to building," said Brendan Duval, Glenfarne's founder and chief executive officer. "By aligning construction, pipe supply, gas supply and in-state customers, we are advancing Alaska LNG in a concrete way that is practical, financeable and focused on delivering real benefits to Alaskans."

Glenfarne, through its Alaskan subsidiary, split development into two phases earlier this year. The first phase would include a 739-mile, 42-inch pipeline that would be constructed in four sections, with potential tie-backs to existing midstream infrastructure.

That's changed since Phase I was introduced in early January. No tie-backs were mentioned, and the pipeline was listed as 765 miles long. Glenfarne now says it expects to move the first batch of natural gas through the pipeline, which is slated to address domestic demand, by 2029.

A non-binding letter of intent with Donlin Gold LLC (Anchorage), which is developing an Alaskan gold mine owned by Novagold Resources (Vancouver, British Columbia) and Paulson Advisers (Portland, Oregon), outlines 50 million cubic feet per year in natural gas volumes from the pipeline, which would help supply the gold mine with electricity.

Phase II would add on coastal infrastructure that would be able to produce 20 million metric tons of liquefied natural gas (LNG) per year for potential exports to Asia.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more about Alaska LNG--including capacities, investment values and necessary equipment--in a detailed project report.

By the Numbers

• 739-mile, 42-inch pipeline needed
• 18 Bcf/d in total LNG feedgas so far in January
• 1 Bcf/d in gas expected from Alaska this year

Alaska an Energy Darling for Trump

Alaskan developments were singled out in executive action from U.S. President Donald Trump. Looking to tap the state's "extraordinary" potential, the president last January said Alaska could be at the center of domestic resources for "generations to come."

"By developing these resources to the fullest extent possible, we can help deliver price relief for Americans, create high-quality jobs for our citizens, ameliorate our trade imbalances, augment the nation's exercise of global energy dominance, and guard against foreign powers weaponizing energy supplies in theaters of geopolitical conflict," the order said.

Alaska holds scant natural gas reserves, however. The U.S. Energy Information Administration, the statistical arm of the Energy Department, estimates state gas production will average 1 billion cubic feet per day (Bcf/d) this year. That compares to the Appalachia shale basin, spread out over parts of West Virginia and Pennsylvania, with an expected average of 36.5 Bcf/d.

LNG export facilities along the U.S. Gulf Coast support the nation's position as the lead global supplier of the super-cooled gas. In its NATGAS Today report for Friday, IIR Energy showed the eight operational export terminals, most of which are situated on the coast, have received about 18 Bcf/d in feedgas so far in January, some 2 Bcf/d above federal estimates for the annual average.

Competition from Canada

Meanwhile, Alaska LNG has competition from Canada, which is already delivering from its LNG Canada facility in British Columbia. On Monday, the developers of the planned Woodfibre LNG facility in British Columbia received two modules that would facilitate further construction, a pretreatment unit and a processing unit. That brings construction to nearly 60% complete.

Once its finished next year, developers believe it will be the first net-zero facility of its kind in the world.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database have access to detailed project reports for both LNG Canada and Woodfibre.

Elsewhere, Alaska LNG faces separate challenges, largely from building a new pipeline through the Alaskan tundra. Global warming trends could curtail any construction windows for the facility. IIR Energy gives it a medium-probability of completion. With pipeline gas slated for 2029, it's unlikely to start shipping before the end of the decade. Key Takeaways

• Glenfarne gets early pipeline support
• Alaska singled out for energy by Trump
• Construction will be difficult due to warming trends

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).