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Released November 12, 2025 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)

Summary

The Trump administration praised a deal for Baker Hughes to supply compressors at the planned Alaska LNG facility.

Baker Hughes Tapped for Alaska LNG Work

Days after the federal government announced plans for a drilling auction offshore Alaska, administration officials praised a supply deal for Baker Hughes at a planned liquefied natural gas (LNG) facility in the northern-most state.

Glenfarne Alaska LNG (Anchorage, Alaska) late Monday tapped Baker Hughes (Houston, Texas) to supply the compressors for a slated LNG export terminal and power-generation equipment for a gas treatment plant on the North Slope.

U.S. Secretary of Energy Chris Wright and Interior Secretary Doug Burgum were on hand for a signing ceremony in Washington D.C. Wright, the former head of oilfield services firm Liberty Energy (Denver, Colorado), said the LNG export facility in Alaska could be a major piece of U.S. energy infrastructure.

"Today's investment announcement is an important step forward for the project, prosperity in Alaska, and the energy security of America and our allies," he said. "The Trump administration remains committed to unleashing Alaska's energy potential, including by supporting Alaska LNG."

The facility would have a nameplate capacity of 20 metric tons per annum (MTPA) of gas in the liquid form and require an 807-mile pipeline for feed gas from Alaska's North Slope. Engineering firm Worley (North Sydney, Australia) is in the process of finalizing a cost assessment of the pipeline, but it's not yet under construction.

Though a final investment decision (FID) isn't expected for another year, the Alaska LNG project is already supported by offtake agreements from Asia. Tokyo Gas Company (Tokyo) signed a non-binding letter of intent to take 1 MTPA. South Korean steel producer POSCO (Pohang) reached an agreement in September to supply the bulk of the steel necessary for a pipeline slated to feed the Alaska LNG facility. U.S tariffs on steel and aluminum create obstacles for a midstream sector that doesn't make its own pipeline.

POSCO also secured 1 million metric tons of LNG per year from the project for a 20-year period.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can read more information on the Alaska LNG project.

Alaska Drilling Auction Coming Soon

The deal for Baker Hughes followed an announcement of scheduled lease sales for the Gulf of Mexico and the Cook Inlet off Alaska, the first such offerings from President Donald Trump's signature spending bill.

Working in Alaska, however, is difficult due to the terrain in state's tundra, which can impede everything from road construction to well pads. Shell plc (London, England) was among the early players in Alaska, later bidding $39 billion for drilling rights in 2007. The company left the state less than a decade later.

Hilcorp Energy (Anchorage, Alaska) was the lone bidder for a Cook Inlet lease in 2023. Its high bid of $64,000 was for a 2,304-acre subsection of the 1 million acres put on the auction block.

Natural gas production is meager at best in Alaska. The U.S. Department of Energy estimates total Alaskan natural gas production will average 1 billion cubic feet per day (Bcf/d) this year, compared to the average of 114.8 Bcf/d from the Lower 48 states.

By the Numbers
  • 1 Bcf/d: average Alaska natural gas production for 2025
  • 807 miles worth of pipeline needed for Alaska LNG
  • 20 metric tons per annum: Alaska LNG capacity
Key Takeaways
  • The Trump administration is betting heavily in Alaskan energy developments
  • LNG exports would cater to Asia, though Alaska is only a minor natural gas producer
  • Energy Secretary said Alaska LNG is one of the most important energy infrastructure projects

About Industrial Info Resources
Industrial Info Resources (IIR) 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 over 200,000 current and future projects worth $17.8 Trillion (USD).
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