Chugach and Glenfarne Alaska LNG signed a non-binding LOI — a step, not a contract

Chugach Electric Association and Glenfarne Alaska LNG signed a non-binding letter of intent on June 15 outlining preliminary terms for delivering North Slope natural gas to Chugach through the proposed Alaska LNG pipeline. The agreement is not a contract. No price or volume terms have been publicly disclosed. The two parties say they intend to continue negotiating.

The LOI is one of several hedges Chugach is pursuing as its Cook Inlet gas supply runs down. The Railbelt's largest electric utility is simultaneously preparing short-term gas imports (with Harvest, a Hilcorp family company), pursuing four early-stage hydroelectric projects on Southcentral creeks, and continuing to produce from its two-thirds ownership in the Beluga River Unit field.

The Alaska LNG pipeline itself is the structural unknown. The 807-mile, 42-inch project would move North Slope gas south to Southcentral Alaska in Phase One, and to a liquefied natural gas export terminal in Phase Two. Glenfarne holds 75 percent; the State of Alaska, through the Alaska Gasline Development Corporation, holds 25 percent. The project has been proposed in various forms for decades without reaching final investment decision, and Phase One is still pre-FID.

Ryan Fitzpatrick of the Division of Oil and Gas told the Senate Finance Committee that Chugach's Beluga share is from a "declining" and "old field." Rep. Zack Fields noted Chugach's gas contracts expire sooner than other Railbelt utilities', which is part of why Chugach is pursuing import infrastructure alongside long-term supply discussions.

The honest framing: this LOI is a step, not a deal. Non-binding letters of intent are common in major energy projects and often precede multi-year negotiation periods. Both companies have reasons to announce one — Glenfarne to show momentum on a pipeline that requires investor commitments, Chugach to demonstrate it's pursuing every supply option as the Cook Inlet clock runs.