Alaska LNG lease filing lists state gasline corporation as 25 percent owner

8 Star Alaska, the Alaska LNG project company, submitted financial-capability materials to the Alaska Department of Natural Resources on Oct. 2. The filing supports converting two conditional pipeline right-of-way leases.

The state issued the leases in April 2021. Conversion requires a written finding that the applicant is "fit, willing, and able," including financially. Anyone may request a public hearing within 30 days of the department's Oct. 5 notice.

The filing proposes non-recourse project financing secured by project assets, contracts and cash flows. It says total 8 Star capitalization would exceed $50 billion, cites offtake and gas supply agreements including TotalEnergies, Tokyo Gas, ExxonMobil and Hilcorp, and says civil contractors would mobilize in 2027 for early works. The project's Oct. 1 report to the U.S. Department of Energy says it holds no long-term LNG export or supply contracts, and Glenfarne has called its offtake agreements preliminary, Alaska News reported.

The filing states that the Alaska Gasline Development Corporation "divested majority membership and management of 8 Star in 2025 to Glenfarne."

Glenfarne Alaska LNG, LLC owns 75 percent of 8 Star. The state holds 25 percent through AGDC, which keeps the two leases as a member of 8 Star. Glenfarne, the developer, committed to fund development through final investment decision, the point when owners commit to build. "They're funding the entire project at this point," AGDC's Matt Kissinger told senators.

That 25 percent is a share of 8 Star, the holding company. An AGDC witness told the Senate Finance Committee on June 16 that AGDC cannot be diluted there, but its indirect 25 percent of the pipeline company "will definitely be diluted" when equity is raised.

Sen. Bert Stedman pressed the point: "We need to clearly understand when that 75% could change ownership either through dilution or just sale." Witnesses said neither owner can sell its 8 Star share until the pipeline operates commercially and the project's other two parts reach final investment decision, or 10 years, whichever comes first.

The filing says the Alaska Advantage Principles set expectations for making gas available to Alaskans. Those principles and a Department of Revenue economic analysis were filed confidentially, and more financial information will follow.

Adam Prestidge, 8 Star's president, signed the filing, which now goes before Commissioner John Crowther's department.