How big is the Alaska LNG Project? Glenfarne says more than 50 firms interested in Alaska LNG project

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The Alaska LNG Project: A Mega-Project for Energy Security and Economic Growth

The Alaska LNG Project is a proposed liquefied natural gas (LNG) export initiative aimed at tapping into the vast natural gas reserves of Alaska’s North Slope. Spearheaded by the state-owned Alaska Gasline Development Corporation (AGDC), the project seeks to deliver a stable supply of natural gas for both in-state use and international markets, particularly in Asia. With an estimated cost of $44 billion, it is one of the most ambitious energy infrastructure projects in the United States, promising significant economic, environmental, and geopolitical benefits. However, the project faces substantial challenges, including high costs, environmental concerns, and market uncertainties. This article explores the project’s scope, LNG production projections, recent developments, and the hurdles it must overcome to become a reality with an update at the bottom from LNGPrime.com.

I have enjoyed all of my trips to Alaska, and have close family ties to the discovery of the North Slope. My Grandfather was one of the key geologists in the discovery of the Alaska North Slope, and his momentos from that time are family treasures.

Project Overview

The Alaska LNG Project is an integrated natural gas infrastructure endeavor comprising three main components:

Gas Treatment Plant: Located at Prudhoe Bay, this facility will process natural gas from the North Slope fields, removing impurities and preparing it for transport. It is designed to handle approximately 3 billion cubic feet (Bcf) of gas per day, with carbon dioxide captured and reinjected to reduce emissions.
Pipeline: An 807-mile, 42-inch-diameter pipeline will transport gas from the North Slope to a liquefaction facility in Nikiski, on Alaska’s Kenai Peninsula. The pipeline, with a daily capacity of 3.3 Bcf, includes multiple compressor stations and interconnection points for in-state gas distribution. It features a buried design, except for specific aerial and offshore sections, such as a crossing of Cook Inlet.
Liquefaction and Export Terminal: The Nikiski facility will liquefy up to 20 million metric tons per annum (MTPA) of LNG, equivalent to about 2.5 Bcf of gas per day, for export primarily to Asian markets. The facility will include three LNG trains, two storage tanks (each with a capacity of 240,000 cubic meters), and two jetties for tanker loading.

The project leverages gas from the Prudhoe Bay and Point Thomson fields, which are expected to supply an average of 3.5 Bcf per day, with 75% from Prudhoe Bay and 25% from Point Thomson. Approximately 18% of the gas volume is earmarked for in-state use, addressing Alaska’s looming energy shortfall in regions like Cook Inlet, while the remainder will be exported.

LNG Amounts and Projections

The Alaska LNG Project is designed to produce and export significant quantities of LNG, positioning Alaska as a key player in the global LNG market. Below are the key projections based on available data:

Daily Gas Production: The project is expected to deliver 3.5 Bcf of gas per day from the North Slope fields.
Pipeline Capacity: The pipeline can transport 3.3 Bcf per day, with an average throughput of 3.1 Bcf per day.
LNG Export Capacity: The Nikiski liquefaction facility will produce up to 20 MTPA of LNG, equivalent to approximately 2.5 Bcf of gas per day.
In-State Use: Around 200 million cubic feet per day (MMcf/d) is projected to meet local demand in Cook Inlet by 2030.
Export Volume Commitments: Taiwan has expressed interest in importing 6 MTPA of LNG, while Thailand is considering 2–5 MTPA. Potential buyers in Japan, South Korea, and the Philippines have also shown interest.
Economic Impact: Over its 30-year authorization, the project is projected to strengthen the U.S. balance of trade by $10 billion annually and create thousands of jobs (9,000–15,000 during construction and 1,000 during operations).

The project’s timeline envisions construction beginning in 2026, with the pipeline delivering gas to Southcentral Alaska by 2028 and the full export facility operational by 2030 or 2031. These projections hinge on securing a final investment decision (FID) expected in 2025.

.@SecretaryWright is taking the handcuffs OFF Alaska! Unlocking the Alaska LNG Pipeline will BOLSTER the economy and generate THOUSANDS of jobs! pic.twitter.com/3dG37RI7Cd

— U.S. Department of Energy (@ENERGY) June 3, 2025

Recent Developments

The Alaska LNG Project has gained significant momentum in 2025, driven by political support, private investment, and international interest:

Private Investment: In January 2025, AGDC signed a framework agreement with Glenfarne Group, a New York-based energy firm, to lead and fund the project’s development. Glenfarne acquired a 75% stake in 8 Star Alaska, a subsidiary managing project assets, and will cover engineering and design costs until the FID. This marks a shift from state-led development, as major oil companies (ExxonMobil, BP, and ConocoPhillips) withdrew in 2016 due to cost concerns.
Political Support: The project has received strong backing from the Trump administration. A January 2025 executive order prioritized Alaska’s LNG potential, directing federal agencies to expedite approvals. President Trump has promoted the project as a “gigantic” initiative to enhance U.S. energy exports and reduce trade imbalances with Asian allies. Alaska’s congressional delegation, including Senators Lisa Murkowski and Dan Sullivan, has also championed the project.
International Interest: Asian countries, wary of U.S. tariff threats, have shown renewed interest. Taiwan’s CPC signed a non-binding letter of intent for 6 MTPA, with potential investment in the project. Japan’s JERA and Mitsui, along with buyers in South Korea and Thailand, are exploring offtake agreements. The project’s shorter shipping route to Asia (8 days versus 24 days from the U.S. Gulf Coast) is a key advantage.
Permitting Progress: The project secured federal authorization from the Federal Energy Regulatory Commission (FERC) in 2020, with additional approvals under the Biden administration in 2023. Permitting, costing over $100 million and spanning five years, has significantly de-risked the project. In 2025, the project reinitiated FAST-41 coverage to update Biological Opinions and renew authorizations.

Challenges and Opposition

Despite its promise, the Alaska LNG Project faces formidable challenges:

High Costs: The $44 billion price tag (potentially rising to $50 billion) makes it one of the most expensive LNG projects globally. Critics argue that the upfront costs, driven by the 807-mile pipeline, outweigh the economic benefits, especially compared to cheaper Gulf Coast projects. Securing private investment for construction remains a hurdle.
Environmental Concerns: Environmental groups, including Earthjustice, Sierra Club, and the Center for Biological Diversity, have filed lawsuits challenging the project’s approvals. They argue that it will emit up to 2.7 billion metric tons of greenhouse gases over its lifetime, equivalent to 10 times the emissions of the Willow Project. The pipeline and terminal threaten endangered species like Cook Inlet beluga whales, polar bears, and North Pacific right whales, and could disrupt over 10,000 acres of wetlands and permafrost.
Market Risks: Global LNG demand is projected to peak by 2030, with key markets like Japan, South Korea, and China shifting toward renewables. The project’s long timeline (operational by 2030–2031) risks missing peak demand. Additionally, non-binding commitments from Asian buyers raise doubts about securing firm offtake agreements.
Local Energy Needs: Southcentral Alaska faces a natural gas shortage as early as 2026, but the pipeline’s 8-year construction timeline means it cannot address immediate needs. Utilities may rely on LNG imports in the interim, complicating the project’s in-state benefits.

Economic and Strategic Significance

The Alaska LNG Project holds immense potential for Alaska and the U.S. It is expected to provide energy security for Alaskans, particularly in Cook Inlet, where gas supplies are dwindling. The project’s in-state gas distribution will support home heating, power generation, and industrial growth in sectors like mining and refining. Economically, it promises thousands of jobs and billions in revenue, with Wood Mackenzie deeming it viable due to lower operating costs and proximity to Asian markets.

Geopolitically, the project strengthens U.S. energy exports to allies, reducing reliance on Russian LNG and enhancing energy stability in Asia. Its strategic location avoids congested routes like the Panama Canal and contested waters in the South China Sea, offering a reliable supply chain. The inclusion of a carbon capture facility on the North Slope further aligns with global emissions reduction goals, potentially offsetting up to 2.3 billion tons of carbon emissions over the project’s lifetime.

Conclusion

The Alaska LNG Project represents a bold vision to unlock the North Slope’s 35 trillion cubic feet of proven natural gas reserves. With a capacity to export 20 MTPA of LNG and meet Alaska’s domestic energy needs, it could transform the state’s economy and bolster U.S. energy leadership. Recent developments, including Glenfarne’s investment and Trump’s endorsement, have revitalized the project after decades of setbacks. However, its success is not guaranteed. High costs, environmental opposition, and market uncertainties pose significant risks. As the project approaches its 2025 FID, stakeholders must balance its economic promise with its environmental and logistical challenges. If realized, Alaska LNG could mark a new era of prosperity for Alaska and a strategic win for U.S. energy policy.

Sources

Alaska LNG Project Overview:
Pipeline Details:
Recent Updates and Glenfarne Agreement:
LNG Amounts and Projections:
International Interest:
Environmental and Legal Challenges:
Economic and Strategic Impacts:

If you require further details, specific analyses (e.g., environmental impact breakdown), or additional data for the CSV, please let me know!

Source: LNGPrime.com

Earlier this year, Glenfarne signed definitive agreements with state-owned Alaska Gasline Development Corporation to become the majority owner of the giant Alaska LNG export project.

The project is designed to deliver North Slope natural gas to Alaskans and Alaska utilities and export up to 20 million tonnes of LNG per year.

Alaska LNG’s three subprojects include an 807-mile 42-inch pipeline, the 20 mtpa LNG export terminal in Nikiski, Alaska, and a North Slope-based carbon capture plant to remove and store seven million tons of carbon dioxide annually.

Glenfarne said on Tuesday it had completed the first round of its strategic partner selection process, with over 50 companies participating from the US, Japan, Korea, Taiwan, Thailand, India, and the European Union.

The company launched its partner selection process in early May to partner with global companies with a desire for a long-term partnership with the Alaska LNG project.

“These potential partners have formally expressed interest for over $115 billion of contract value for various partnerships with the project, including equipment and material supply, services, investment, and customer agreements,” the company said.

Glenfarne anticipates a final investment decision on the domestic portion of the Alaska LNG pipeline in late fourth quarter of 2025.

The firm recently announced a partnership with Australian engineering firm Worley to complete the final engineering for the pipeline portion of the project.

Brendan Duval, CEO and founder of Glenfarne, said the “many expressions of interest received reinforce that the market recognizes Alaska LNG’s advantaged economics, fully permitted status, and powerful federal, state, and local support.”

“The reality is being understood that the energy crisis in Southcentral Alaska can only be solved, in the long term, by the domestic portion of the pipeline, which is independently financially viable. We look forward to selecting our strategic partners and driving the project forward together,” he said.

AGDC said in March that market interest in Alaska LNG continues to accelerate “rapidly” following the agreement with Glenfarne and President Trump’s executive order identifying Alaska LNG as a national priority.

In March, Taiwan’s CPC Corp signed a letter of intent with AGDC to buy LNG and invest in the planned Alaska LNG project.

Thailand’s PTT and Egco will also engage in further discussions to potentially participate in the development and buy volumes from the planned Alaska LNG project, according to Thailand’s Ministry of Energy.

Besides Taiwan and Thailand, Japan, the Philippines, and South Korea may be interested in buying LNG from Alaska.

Shipping LNG from Alaska to Asian countries would take less time and effort compared to US Gulf Coast LNG export plants, as LNG carriers would not need to pass through the Panama Canal.

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