Alaska LNG asks DNR to convert conditional pipeline leases to full leases

8 Star Alaska LLC has asked the Alaska Department of Natural Resources to turn the Alaska LNG project's two conditional right-of-way leases into full leases, according to a notice DNR posted Monday. The company filed on behalf of the Alaska Gasline Development Corporation, which holds the leases.

Under state pipeline law, a conditional lease goes to an applicant not yet "fit, willing, and able" to perform. That holder is not entitled to authorization to proceed to construction until the commissioner finds in writing that it is. In other words, until the commissioner makes that finding, the project can't get permission to start building. The statute allows no more than 10 years to make that showing. DNR issued these leases on April 8, 2021.

8 Star president Adam Prestidge sent the request to DNR Commissioner John Crowther on Oct. 2. The letter addresses the leases' financial-capability condition. It says all project debt would be secured only by project assets, contracts and cash flows. "The financing will support a total project company capitalization for 8 Star in excess of $50 billion," Prestidge wrote. The public submission describes the proposed financing structure but does not establish that construction financing has closed.

The submission lists 11 commercial agreements, including preliminary LNG purchase arrangements, partnerships and gas-supply precedent agreements. CPC, JERA, Tokyo Gas and TotalEnergies signed letters of intent for LNG purchases. Donlin Gold signed a nonbinding letter of intent for pipeline natural gas and related infrastructure. PTT, POSCO International and Danaos signed cooperation or partnership agreements. ExxonMobil, Hilcorp and ConocoPhillips signed gas-supply precedent agreements. South Korea's government has said it agreed only to review the project, not to commit more than $50 billion to build it, Alaska News reported last week.

Part of the record is confidential. A Department of Revenue economic analysis and the project's Alaska Advantage Principles on in-state gas pricing went to DNR under confidential cover, and more financial information will follow the same way. "The enclosed information addresses each of the Department's requests to the extent practicable at this stage of the Project," Prestidge wrote.

Glenfarne owns 75 percent of the project, and the state owns 25 percent through AGDC. Under a March 28, 2025, agreement, Glenfarne committed to fund development to a final investment decision.

DNR's notice describes an 807-mile mainline route from Prudhoe Bay to Nikiski. The submission describes a 42-inch pipeline and two financially independent development phases: an in-state pipeline first, followed by LNG export infrastructure. Glenfarne's May announcement described the first-phase pipeline as 739 miles long. The route follows the trans-Alaska pipeline to the Livengood area, passes west of Fairbanks, and tracks the Nenana River, the Parks Highway and the Susitna River to Beluga before crossing Cook Inlet near Boulder Point. The second lease covers a 63-mile line along the North Slope coast.

The submission's construction plan calls for civil contractors to mobilize in 2027 to build material sites, camp pads and pipe storage yards. Each mainline construction spread would take two winter and two summer seasons.

The notice, signed by State Pipeline Coordinator Anthony Strupulis, lists Nov. 5 as its archive date. It does not specify a public-comment deadline or say when the commissioner will decide.