The Alaska LNG project may be about to kick into high gear. More than 50 companies from around the world are interested in investing in this project, which involves not only development and extraction but also a new pipeline from Prudhoe Bay to the Kenai Peninsula town of Nikiski. The value of potential contracts could run as high as $115 billion.
As is so often the case, Must Read Alaska's Suzanne Downing has details:
It’s the announcement so many have been anticipating: Glenfarne Alaska LNG, LLC, a subsidiary of Glenfarne Group, LLC and the majority owner and lead developer of the Alaska LNG project, announced today the completion of the first round of its strategic partner selection process.
The expressed interest covers a wide range of partnerships, including equipment and material supply, investment agreements, service contracts, and LNG purchase commitments, highlighting a surge in global confidence in the project’s commercial viability and strategic importance.
The expressed interest will bring a lot of jobs to Alaska and will pour a lot of money into the Alaskan economy. The proposed partners represent interests in the United States, Japan, Korea, Taiwan, Thailand, India, and the European Union. The EU is interesting in particular; are they looking for alternatives to Russian natural gas?
The Alaska LNG project is a joint venture with the State of Alaska’s Alaska Gasline Development Corporation. It features an 807-mile, 42-inch natural gas pipeline stretching from the North Slope to Southcentral Alaska. Designed to meet both in-state demand and international export needs, the project includes a 20 million tonnes per annum (MTPA) LNG export facility in Nikiski.
Glenfarne has structured the project into two financially independent phases. Phase One will construct the pipeline from the North Slope to the Anchorage region—approximately 765 miles—bringing much-needed supply to Southcentral Alaska’s strained energy market. Phase Two will add compression facilities and a 42-mile pipeline extension beneath Cook Inlet, linking to the Nikiski export terminal.
The treasure chest's lid is opening up, and all it took was a new president.
See Also: Trump to Host Alaska LNG Talks With Japan, South Korea
Drill, Baby, Drill: Key Trump Energy Officials To Visit Alaskan Oil Fields
One can't help but note how much of the interest comes from abroad. That's not surprising; the terminus of the new pipeline at the LNG export terminal in Nikiski is perfectly situated to fill LNG tankers bound for Asian ports. Natural gas is a fungible commodity, meaning that an increased supply anywhere means a lower price for the commodity everywhere; it's a global market. We might also note that the natural gas development will help Alaska directly as well. Anchorage, home to about half the state's population, has historically depended on Cook Inlet gas, but the known resources in Cook Inlet are declining. This new pipeline will boost that market as well.
It's a win for Alaska, for the United States, and for the global economy. Alaska has been, for far too long, treated not as a treasure chest but as a three-lock box, never intended to be opened. All that is changing now, and it won't end with natural gas; Alaska's vast mineral resources will be on the table as well.
The Great Land is once more being proven to be the "Crown of the Pacific." And it wouldn't have happened if the 2024 presidential election had gone the other way.
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