Alaska LNG project secures financing proposals, targets 2027 construction start

The Alaska LNG project moved closer to reality Tuesday as Glenfarne Group CEO Brendan Duval announced the company has secured financing proposals from global banks to build the domestic pipeline, with construction targeted to begin in the first quarter of 2027.

Speaking at the Alaska Sustainable Energy Conference, Duval said the project could deliver gas to Cook Inlet by late 2029 if two key approvals fall into place: tax stabilization legislation currently being negotiated in Juneau and Regulatory Commission of Alaska approval of an agreement with Enstar, the local gas utility.

"I can confirm I have received enough proposals of private financing on terms and conditions that once we convert that into long-form documentation, we can build the domestic pipeline, and that is very exciting," Duval said.

The financing proposals depend on two critical conditions. One is a form of tax stabilization arrangement being negotiated in Juneau. Senate Bill 275 was introduced March 5 and referred to the Resources and Finance committees. The other condition is RCA approval of the Enstar agreement, which Duval said is in its final stages.

Duval's announcement marks the latest in a series of Alaska LNG project milestones announced by state officials over the past decade. Previous governors have announced memoranda of understanding and financing commitments that did not result in construction. The current proposals have not been converted to binding contracts.

The project would solve Cook Inlet's gas shortage while enabling liquefied natural gas exports to Asia. The export facility would process 20 million tonnes of LNG annually, with 80 percent of that capacity already allocated to buyers in Taiwan, Thailand, Japan, Korea, and France under 20-year contracts, according to Duval.

Governor Mike Dunleavy emphasized the project's urgency for Alaska's energy security. Cook Inlet gas supplies are diminishing rapidly, and the state experienced record cold temperatures in Fairbanks this winter and record snows in January that drew down remaining reserves.

"That enormous amount of gas would enable us to get incredibly low prices, relatively speaking, here in-state in Alaska, which would reduce, as opposed to what is happening in other parts of the country, reduce the cost of energy for Alaskans. For the long term," Dunleavy said.

The project would be built in two phases with separate financings. Phase one focuses on the domestic pipeline to address Cook Inlet's gas needs. Phase two would add the export facility, with construction beginning roughly a year after pipeline work starts. The project would deliver gas through an 800-mile pipeline from the North Slope to Nikiski.