Alaska LNG developer says financing secured, eyes 2027 start

The developer of the Alaska LNG project announced Thursday that financing proposals are in hand and contractors are ready to mobilize equipment to the North Slope by early 2027.

Brendan Duval, founder and CEO of Glenfarne Group, told the Alaska Sustainable Energy Conference in Anchorage that the 807-mile pipeline from Prudhoe Bay to Nikiski could deliver gas to Cook Inlet by late 2029. Construction bids have been received, pipe supply is contracted, and global banks have submitted financing terms for the domestic pipeline phase.

"We have let out the bulk of the construction, the equipment supply, the pipe," Duval said. "The Alaska LNG Project in particular, Phase 1 pipeline, is in a fantastic position to start delivering gas in 2029."

The project needs two approvals before construction can begin. The Alaska State Legislature is negotiating a tax abatement stabilization arrangement to lock in fiscal terms for investors. The Regulatory Commission of Alaska must approve a gas supply agreement between the pipeline developer and ENSTAR Natural Gas Company, the utility serving Southcentral Alaska.

For Southcentral utilities, the pipeline offers an alternative to declining Cook Inlet gas production and imported LNG. ENSTAR has signed a non-binding letter of intent for a 30-year gas supply from the pipeline. Duval said the agreement would deliver North Slope gas at lower cost than current LNG imports.

"We can deliver gas from the North Slope that's more reliable and more cost effective than importing LNG," Duval said.

Governor Mike Dunleavy, who appeared with Duval at the conference, said Cook Inlet gas supplies are declining rapidly. A cold winter and spring this year drew down remaining reserves.

"We're running out of gas in the very inlet in which we pioneered LNG export," Dunleavy said. "Right out the window here, we're running out of gas."

Duval said the developer has reached gas supply agreements with Conoco, Exxon, Hilcorp and Pantheon for North Slope production. The project is being advanced in two phases, with the domestic pipeline first and the export liquefaction facilities on a separate financing timeline.

Duval said the developer expects to announce a final investment decision within 90 to 120 days, pending the two regulatory approvals. The Alaska State Legislature is currently considering the tax arrangement.