Alaska LNG Gets New Majority Owner

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--A few short days after presidential action on Alaska's energy, a new party is emerging as the majority owner of a facility slated to bring gas from the North Slope to the coast for exports as liquefied natural gas (LNG).

The Alaska Gasline Development Corporation (AGDC) offloaded its 75% stake in the Alaska LNG project to Glenfarne Alaska LNG, an affiliate of the Glenfarne Group, for undisclosed terms. Glenfarne, an industrial manager of energy and infrastructure assets, has worked largely in Latin America since its founding in 2011, though it's working to develop LNG projects in Louisiana and Texas as well.

Under the agreement with AGDC signed Friday, Glenfarne becomes the head developer of the Alaska LNG project, assuming the lead on phases from front-end engineering and design (FEED) to the final investment decision.

Glenfarne Chief Executive Officer Brendan Duval, who founded the company, said Alaska LNG would prove to be a source of energy security at home, while feeding markets overseas.

"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 added.

Glenfarne said Alaska LNG will consist of a roughly 800-mile natural gas pipeline running from the North Slope to Nikiski on Alaska's Kenai Peninsula. On the North Slope, the company said it plans to deploy carbon-capture technology that would abate some 7 million tons of carbon dioxide annually.

If built, Alaska LNG would have a peak liquefaction capacity of about 3.3 billion cubic feet per day, according to Industrial Info's GMI Database. IIR Energy finds 19 separate projects affiliated with Alaska LNG worth a total investment value of $42.7 billion. It could be completed by 2030.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can learn more from a detailed project report, and can click here for a full list of reports for projects related to Alaska LNG.

Alaska LNG submitted its export application in 2014 and has been approved by the Federal Energy Regulatory Commission (FERC), but it is not yet under construction. If completed, it would be one of the largest U.S. LNG export facilities by volume.

The facility already has an offtake agreement with the CPC Corporation in Taiwan, though it was secured through a non-binding letter of intent.

Developments follow executive action on Alaska from President Donald Trump. To meet presidential orders, Interior Secretary Doug Burgum said he would pursue reopening parts of the National Petroleum Reserve in Alaska up to drillers, leasing out parts of the Arctic National Wildlife Refuge and advancing the Alaska LNG project.

"It's time for the U.S. to embrace Alaska's abundant and largely untapped resources as a pathway to prosperity for the nation, including Alaskans," he said last week. "For far too long, the federal government has created too many barriers to capitalizing on the state's energy potential."

With Trump's trade policies, meanwhile, the western shore of North America is becoming something of a chess board. Looking to break out of North America due to tariff threats, Canada is also expected to start shipping LNG to customers in the Asia-Pacific relatively soon.

The U.S. is the world leader in LNG exports by far, but most facilities are on the Gulf Coast. Western exports would offer shorter shipping routes to Asia, though some economies there may be wary of U.S. trade amid the sweeping tariff threats.

Elsewhere, a warming climate creates problems for pipeline construction along the Alaskan tundra as the window for construction season gets shorter and shorter. Alaska Gov. Mike Dunleavy, however, was undeterred.

"Alaska LNG will strengthen the U.S. 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.

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) platform 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 200,000 current and future projects worth $17.8 trillion (USD).