Glenfarne Alaska LNG, LLC, an affiliate of Glenfarne Group, LLC, and the Alaska Gasline Development Corporation (AGDC) have signed definitive agreements for Glenfarne to become the majority owner and lead developer of the Alaska LNG project, according to the company's release.
The project, the sole federally permitted LNG export project on the U.S. Pacific Coast, is designed to deliver North Slope natural gas to Alaskans and Alaska utilities and export up to 20 million tonnes of LNG per year (MTPA).
Under the agreement, AGDC is divesting 75 percent of 8 Star Alaska, a subsidiary created to hold and manage all Alaska LNG project assets, to Glenfarne.
Glenfarne will assume the role of lead developer, overseeing all remaining development work from front-end engineering and design (“FEED”) through to a final investment decision (“FID”), anticipated in 2025.
AGDC will retain a 25 percent ownership stake in 8 Star Alaska and will be a key partner in the project.
The Alaska LNG project includes an 807-mile 42-inch pipeline, a 20 MTPA LNG export terminal in Nikiski, Alaska, and a North Slope-based carbon capture plant with the capacity to remove and safely store 7 million tons of carbon dioxide annually.
Phase one of the project will prioritize the development and final investment decision of the pipeline infrastructure to address declining gas production from Cook Inlet.
Following a successful final investment decision, the State of Alaska will retain a 25 percent share in 8 Star Alaska and have the option to invest up to 25 percent in any or all of the three subprojects.
Alaska Governor Mike Dunleavy stated, “Today is a historic day for Alaska... 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.”
The agreement follows a letter of intent in June 2024 and an exclusive term sheet in December 2024.
Glenfarne’s portfolio includes Texas LNG, which has fully sold out its capacity, and Magnolia LNG, a late-stage LNG export project. Glenfarne owns 50 operating assets in the energy sector across five countries. With Alaska LNG, Glenfarne’s total permitted LNG portfolio under development amounts to 32.8 MTPA of capacity.