Chugach Electric signs gas supply LOI with Glenfarne Alaska LNG

Chugach Electric Association, the Railbelt's largest electric utility, and Glenfarne Alaska LNG signed a non-binding letter of intent on June 15, 2026, outlining preliminary terms for delivering North Slope natural gas via the proposed Alaska LNG pipeline. The agreement is not a contract. No price or volume terms have been publicly disclosed. The two parties said they intend to continue negotiations aimed at securing a low-cost energy future for Alaskans.

Glenfarne Alaska LNG, LLC, a subsidiary of Glenfarne Group, announced the LOI in a press release. Chugach said the agreement is consistent with its commitment to providing customers with safe, reliable, and affordable electricity.

A Declining Supply Problem

Ryan Fitzpatrick of the Division of Oil and Gas told the Alaska Senate Finance Committee on June 16 that Chugach is a part owner of the Beluga Field and sources a large portion of its gas from that interest, but "that field is declining and it is an old field." Chugach also has a contract with Hilcorp. Representative Zack Fields noted separately that Chugach has a contract that "ends sooner" than those of other Railbelt utilities, and that Chugach is also pursuing an import facility with Harvest, which is a part of the Hilcorp family of companies.

The Pipeline

The Alaska LNG project is an 807-mile, 42-inch pipeline designed to move North Slope gas south to Southcentral Alaska and, in a second phase, to a liquefied natural gas export terminal capable of producing 20 MTPA of LNG. Glenfarne holds 75 percent of the project. The State of Alaska, through the Alaska Gasline Development Corporation, holds the remaining 25 percent. The two phases are structured as financially independent, with Phase One focused on domestic delivery.

Member-Owners and What Comes Next

As a cooperative, every person who pays a Chugach bill is a member-owner eligible to vote in board elections that shape resource decisions. The Renewable Energy Alaska Project, in its 2026 board election guidance, told member-owners: "If you pay an electric bill to Chugach Electric Association, then you are a member-owner of the electric cooperative and you are eligible to vote in this election."

No binding agreement exists. The pipeline has not reached a final investment decision.