Alaska’s long-discussed $44 billion LNG project has taken a significant step forward with New York-based Glenfarne Energy Transition securing an exclusive agreement to develop it. 

This deal, confirmed by a Glenfarne spokesperson, includes the development of the Alaska export facility, an 800-mile pipeline, and a carbon capture facility. 

The project, which aims to tap into the vast natural gas reserves on Alaska’s North Slope, has been in the works for over a decade, facing numerous challenges due to its immense scale and cost.

The Alaska Gasline Development Corporation (AGDC), the state-owned entity overseeing the project, had been exploring partnerships to move the project forward. Frank Richards, president of AGDC, announced that they had reached an “exclusive framework agreement with a qualified energy company,” later revealed to be Glenfarne. 

Richards stated, “The next step is for both parties to create legally binding development agreements that will move the project forward. The company involved brings extensive US and international natural gas and LNG experience to bear to this project.” He anticipates a “formal announcement of the definitive agreements in the next few months.”

Glenfarne, founded in 2011, is a company that develops and operates energy and infrastructure projects, viewing LNG as a transitional fuel towards renewables. They are also developing LNG projects in Texas and Louisiana, although those projects have yet to reach a final investment decision. The Alaska LNG project, which would liquefy natural gas in Nikiski on the Kenai Peninsula for export to Asian markets, is also far from this critical stage. Glenfarne also revealed an additional agreement with Enstar Natural Gas to develop an LNG import project at the Alaska LNG export site.

To support the project, the Alaska Industrial Development and Export Authority (AIDEA) approved a $50 million line of credit, enabling Glenfarne to fund engineering and design studies. Governor Mike Dunleavy has requested the Alaska Legislature to provide these funds to AIDEA.

In a parallel effort to secure Asian investment, Governor Dunleavy and other Alaska state representatives have been touring Japan, Taiwan, and South Korea, highlighting the benefits of Alaska’s LNG for these markets. The Trump Administration has also been actively promoting the project, urging these nations to increase LNG purchases from the U.S. to reduce trade deficits.

Taiwan’s state-owned CPC Corporation has already signed a letter of intent with AGDC to invest in the project and purchase LNG. The Taiwanese Ministry of Economic Affairs noted that Alaska LNG would be Taiwan’s closest LNG supply source in the U.S., shortening shipping times and improving supply reliability. This agreement is seen as a strategic move by Taiwan to strengthen its energy security and potentially gain leverage in trade negotiations with the U.S.

However, Japanese companies have expressed concerns about the project’s high costs, considering Alaska’s harsh climate and the extensive pipeline infrastructure required. Despite this, Japan has shown interest in purchasing LNG from Alaska, with discussions about a “joint venture” for Alaskan oil and gas imports.

Meanwhile, South Korea is also being courted to participate in the project. Governor Dunleavy met with South Korean Industry Minister Ahn Duk-geun to discuss potential energy and trade cooperation. 

President Trump has asserted that Korea wants to join the project, stating, “My administration is also working on a gigantic natural gas pipeline in Alaska, among the largest in the world, where Japan, South Korea and other nations want to be our partner, with investments of trillions of dollars each.”

South Korea is particularly keen to improve its trade relations with the U.S., especially with upcoming tariff deadlines. Minister Ahn Duk-geun has made multiple trips to Washington to discuss trade issues and seek favorable treatment. As he said, “It appears most nations won’t be able to avoid tariffs,” but also, “Addressing U.S. tariff policies is not a single-round match.” The Alaska LNG project presents a potential avenue for South Korea to strengthen its energy security and trade relationship with the U.S.