Alaska
Private company takes over feasibility assessment and development of $44 billion Alaska LNG project
The long-struggling, $44 billion Alaska LNG project has landed a private partner that will take over majority ownership of the company that seeks to deliver natural gas from the North Slope to Alaskans and the world.
The Glenfarne Group will also lead development of the project to construction and operation after the board of the Alaska Gasline Development Corp. on Thursday agreed to a binding deal with the company, according to a statement from AGDC, a state agency.
“Glenfarne’s financial, project management, and commercial expertise is well matched to lead this vital project forward,” said Brendan Duval, Glenfarne’s founder. “Alaska LNG will provide desperately needed energy security and natural gas cost savings for Alaskans and give Glenfarne unmatched flexibility to simultaneously serve LNG markets in both Asia and Europe through our three LNG projects.”
The change in ownership is significant in part because the state corporation has run the project on its own for nearly a decade, after the major oil companies that were its original partners backed out in 2016.
Glenfarne, founded in 2011, is a New York company that develops, owns and operates energy and infrastructure projects. The company is the developer, owner and operator of Texas LNG, the most recent U.S. LNG project to fully sell its LNG volumes with a total market value over $60 billion, its founder Brendan Duval said in February.
“Alaska LNG will ensure a brighter future for generations of Alaskans and I look forward to working with Glenfarne as they lead Alaska LNG forward,” said Frank Richards, president of the AGDC.
“Today is a historic day for Alaska,” Gov. Mike Dunleavy said. “Alaska LNG will strengthen the U.S. geostrategic position in the North Pacific, provide vital energy security for our residents, our military bases, our businesses, and our Asian allies, and unlock billions in economic benefit at home and abroad.”
The project has seen renewed interest from Asian companies that might serve as investors or gas buyers, and President Donald Trump has touted the pipeline as a key project he’d like to see built.
Trump said in his speech to Congress this month that his administration is working on a “gigantic” natural gas pipeline, referring to Alaska LNG. The project’s gas exports to Asia could be so large that they could help alleviate trade imbalances.
The state gas line corporation declined to release the contract with Glenfarne.
The project envisions development of a roughly 800-mile pipeline delivering natural gas from the North Slope. The gas would be processed at a treatment plant on the North Slope and liquefied in Nikiski on the Kenai Peninsula, then exported to Asian markets in oceangoing tankers.
Richards told the gasline board on Thursday that the deal calls for Glenfarne to assume 75% equity of 8 Star Alaska, the state agency’s project development company. The state gas line agency will hold the remaining ownership.
The state has the option to invest in individual facilities such as the gas treatment plant, he said.
“We’ve reserved the right for investment, for the state, of up to 25% in any of the subprojects or all,” Richards said. “And that will be an ongoing discussion with the Legislature and the administration on if that is an opportunity they would like to take or not.”
Glenfarne will cover the costs of the engineering and design work that needs to be completed before a final decision to build the project is made. Duval said the money will come from a consortium of private investors, but a federal loan guarantee could help support that effort, he said.
“They will fund and resource the Alaskan LNG project to final investment decision,” Richards said. “This covers the entire Alaska LNG project, and not just the initial phase of the pipeline.”
Duval said it’s possible a final investment decision could be made by the end of this year. LNG deliveries could begin in 2030 or 2031, he said.
It is unclear what investors, if any, would provide the large sums of money for construction of the project.
It’s also unclear where the natural gas would come from. The agency has signed a deal with a small oil and gas explorer in Alaska in an effort to provide gas for the first phase. Great Bear Pantheon, however, currently does not produce oil or gas. There’s no guarantee it will produce gas in Alaska.
Richards said the gas line agency is working on securing gas sales precedent agreements with other producers, including for gas at the Point Thomson and Prudhoe Bay fields.
Richards said the agreement with Glenfarne covers the entire Alaska LNG project, and not just the initial phase of the pipeline. “So gas treatment, pipeline and liquefaction (plant). But the priority is going to be the phase-one pipeline and gas for Alaskans,” Richards said.
The first phase of the project has been estimated to cost $11 billion. It calls for the construction of a 750-mile pipeline to deliver the gas from the North Slope to the Interior and Southcentral Alaska, where electric utilities are looking at importing natural gas as Cook Inlet gas dwindles.
After the first-phase construction, the larger project to export the gas can be built, according to the plan. That portion of the project includes the construction of a liquefaction facility.
Richards said he was calling into the meeting from Asia. He said he was on a trade mission with Glenfarne and Gov. Dunleavy to Asian countries, looking for companies that might commit to buying Alaska’s gas or investing in the project.
This is a developing story. Check back for updates.
Alaska
Pilot dies in small plane crash southeast of Cordova
A pilot was killed in a plane crash in mountainous terrain near Cordova, Alaska State Troopers said Friday.
The agency was notified of the overdue Piper Pacer around 8 p.m. Thursday, troopers said in an online post. The pilot was believed to be the sole person on board the aircraft, which was thought to be flying between Yakutat and Fairbanks, troopers said.
Aircraft from the Alaska Air National Guard and Alaska Wildlife Troopers started searching for the plane, and a Guard helicopter crew found the overdue Piper Pacer around 4 p.m. Friday where it had crashed near Kanak Island, about 40 miles southeast of Cordova, troopers said.
The pilot, whom troopers did not identify, was found dead in the crashed plane, troopers said. His body was take to the State Medical Examiner Office in Anchorage for autopsy and positive identification, according to troopers.
Troopers said the pilot’s next of kin and the National Transportation Safety Board were notified.
Alaska
It’s the Alaska Legislature’s last day in special session. Here’s the latest.
The Alaska Senate plans to vote today on a new draft of a bill that would reduce taxes on the Alaska LNG project. It’s the last day of a special session Gov. Mike Dunleavy called to consider the issue.
Dunleavy and pipeline developer Glenfarne, which owns a 75% stake in the project, say a measure replacing a 2% annual property tax with a much smaller tax on gas throughput is essential to allowing the project to attract investors and court lenders. Dunleavy and Glenfarne applauded the version of the bill that passed the House a week ago.
The Alaska LNG project, estimated by the developer to cost up to $54.5 billion, includes an 807-mile pipeline, a conditioning facility on the North Slope to remove gas impurities such as carbon dioxide, and a liquefaction plant on the shores of Cook Inlet to export the gas to Asia. The project would be split into two phases: first, a shorter in-state pipeline to provide gas to Alaskans, and then the much more expensive — and much more lucrative — export infrastructure.
The Senate’s new draft retains many of the House’s provisions with some important changes.
Perhaps the most significant changes are to the project’s timeline: to be eligible for tax relief, the developer must commit to a final investment decision for the first phase by Jan. 1, 2028, and construction of the in-state pipeline would need to be complete by the end of 2032.
The House’s version required only that construction begin by Jan. 1, 2032.
The faster timeline is an effort to address Southcentral’s looming shortage of natural gas, said Sen. Bert Stedman, a Sitka Republican and a co-chair of the Senate Finance Committee. The Department of Natural Resources’ production forecast envisions demand outstripping Cook Inlet gas production by 2032, requiring producers to dip into storage.
“There’s been a lot of concern out of the Railbelt with the declining volume in Cook Inlet,” Stedman said.
But the more aggressive timeline sparked concerns from minority Republicans on the committee; it increases the risk on an already risky, marginal project, they said.
“That’s very damaging,” said Sen. Mike Cronk, a Tok Republican and the Senate minority leader. “There’s so many factors that we don’t control.”
Putting a “hard construction date” in the bill may be a “poison pill,” Cronk said.
Glenfarne and Gov. Mike Dunleavy did not immediately respond to requests for comment on the new version of the bill.
Stedman suggested future legislatures could revise the date to account for “unforeseen black swan events.”
“We can change these and modify these going forward,” Stedman said. “This is not in the Constitution, so I think there’d be some consideration under good faith trying to get the project constructed.”
The tax rate at the heart of the bill — the so-called alternative volumetric tax on gas flowing through the pipeline from the North Slope to Southcentral Alaska — would be fixed, rather than a weighted average tied to the cost of each component of the project.
The Senate draft sets the tax initially at 6.2 cents per 1,000 cubic feet of gas throughput, starting five years after gas begins to flow through the pipeline. The tax would take effect sooner if throughput reaches 500 million cubic feet per day, which is more than double what Southcentral Alaska uses now.
The tax would rise to 10.6 cents per 1,000 cubic feet once Phase 2 of the project, which includes the liquefied natural gas export facility, is up and running. The tax revenue from that mirrors what the Department of Revenue estimates the weighted tax that passed the House would yield.
The rates would rise between 1% and 3% each year, depending on inflation.
The House backed 30-plus years of tax breaks. Some senators were skeptical of that, so their version doubles the tax rate ten years after exports begin, then doubles them again in 2060.
The new bill retains key conditions for the tax relief included in the House’s version: the developer must commit to building a spur line to Fairbanks and negotiate project labor agreements with unions. It also includes up to $80 million in community impact funding for municipalities: $40 million due shortly after the final investment decision for each project phase.
It also includes House-passed price controls on in-state gas. Utilities would pay no more than $16 per million British thermal units, adjusted for inflation. That’s roughly $16.60 per 1,000 cubic feet, substantially higher than current Southcentral gas rates — about $10 — but likely cheaper than imported gas, according to Southcentral’s gas utility.
Also notable is an omission from the bill. It does not include a measure that had been under discussion that would subject large so-called S corporations and other pass-through entities in the oil and gas business, like LLCs, to the state’s corporate income tax.
Glenfarne, in its only comments so far on the new bill, urged lawmakers not to include that tax in the final version.
“If the Senate passes a bill with the proposed S Corp tax, it will introduce major hurdles for Alaska LNG to secure the right financing to build the project,” the company said in a statement provided by spokesperson Tim Fitzpatrick.
Senators are due to amend the bill and take a final vote later today.
The special session expires at midnight tonight, but Gov. Mike Dunleavy has already signed a proclamation calling another special session to begin Saturday.
Asked whether the new special session represented a contingency plan in an event the bill failed to pass, Dunleavy spokesperson Jeff Turner declined to say.
“We will see what happens,” Turner said.
This is a developing story. Check back for updates.
Alaska
8 Prettiest Downtown Strips In Alaska
Alaska’s eight prettiest downtown strips sit in towns as different from each other as the landscapes around them. Skagway draws cruise ship visitors to its Gold Rush history. Sitka pairs Russian Orthodox history with totem-lined trails just beyond downtown. Wrangell is one of the oldest towns in the state. Each downtown is worth spending time in, though Sitka, Ketchikan, and Wrangell are the only ones on this list accessible solely by air or water. In winter, clear dark nights can bring Northern Lights over several of these towns. After a day out, fresh seafood is never far away.
Skagway
Skagway is located in Alaska’s panhandle and is known as the gateway to the Klondike Gold Rush and a major cruise ship destination. For those who love nature and history, visit Klondike Gold Rush National Historical Park and hike part of the 33-mile Chilkoot Trail, the historic route between Dyea, Alaska, and Lake Bennett, British Columbia. Backpackers can stay at designated campsites along the route, with permits required in season. For food, check out Skagway Brewing Company, which offers craft beers and American comfort foods. Another seasonal Skagway option is Salty Siren, whose menu features Alaskan golden king crab, seafood chowder, fish and chips, and pulled-pork sandwiches.
Sitka
Sitka sits on Baranof Island and is known for its rich Tlingit and Russian heritage, gorgeous outdoor scenery, and variety of wildlife. Sitka is only accessible by sea or air and is a popular stop on cruises. The area offers lots of outdoor activities, including fishing, hiking, and kayaking. Tourists like to visit St. Michael’s Russian Orthodox Cathedral, a National Historic Landmark whose original 1844-1848 building was reconstructed after a 1966 fire. For a short walk through Sitka’s layered history, visit Sitka National Historical Park, where visitors can enjoy a scenic coastal trail lined with totem poles. Grab a bite to eat at Beak Restaurant for delicious seafood. Or if you’re craving pizza or wings, visit Mean Queen for some comfort food.
Talkeetna
Talkeetna is a historic place in Alaska’s Matanuska-Susitna Borough, famous as a gateway to Denali, North America’s highest peak, which welcomes tourists and climbers from all over the world. Beginning as an Alaska Railroad headquarters, this historic location has an artistic vibe and a vibrant art scene despite its small population. Locals and visitors enjoy flightseeing, rafting, fishing, and delving into the unique history, including Stubbs, the late honorary cat mayor who held the ceremonial role until his death in 2017. For those hoping to see the Northern Lights, Talkeetna’s dark winter skies can be a good base when skies are clear and aurora activity is strong. Once you’re hungry, grab some friends and visit Homestead Kitchen for some traditional rustic options like burgers and flatbreads. Then grab a craft beer at Denali Brewpub in their rustic setting.
Homer
Found on the Kenai Peninsula, Homer is famous for its gorgeous views of Kachemak Bay, the Homer Spit, and distant volcanoes. Here’s a perfect spot for those hoping to see wildlife and enjoy other outdoor activities, like hiking and fishing. Across the bay, Kachemak Bay State Park is reached by water taxi or air taxi and offers views of the mountains and the ocean. Or head to Bishop’s Beach, which is dog-friendly, and enjoy the soft sand with your four-legged best friend. After experiencing the beautiful scenery of Homer, grab some dinner at the Twisted Goat and dig into some comfort food, including pizza, fish and chips, and burgers. On a nice day, visitors won’t want to miss a local favorite, Water Rudders, which offers a beautiful view from its patio.
Seward
Located about 120 miles south of Anchorage, Seward is a scenic port town at the head of Resurrection Bay. It’s loved for its beautiful views of the mountains, marine wildlife, and glaciers, and it serves as a gateway to Kenai Fjords National Park. Here, visitors can take a hike, join in on ranger-guided tours, kayak, and so much more. For those wanting an aerial view, Seward Helicopter Tours offers flights over glaciers and other beautiful sites. For those looking to camp, Waterfront Park offers RV and tent sites with views you can’t beat. After enjoying sightseeing, grab some seafood or steak at Ray’s Waterfront with a wood-paneled dining room overlooking the marina and mountains. Or get some comfort food at The Highliner Restaurant, where the menu includes crab cakes and fish tacos, just to name a few.
Ketchikan
Ketchikan is located on Revillagigedo Island in Alaska’s Tongass National Forest, known for its rich native culture, totem poles, and salmon fishing. The town is a popular cruise ship destination and is only accessible by boat or plane. Here, visitors can enjoy wildlife viewing, especially in the summer months. For a beautiful site, look into Misty Fjords National Monument and see sheer granite cliffs, towering 3,000-foot rock walls, deep saltwater fjords, and waterfalls within Tongass National Forest. Locals and visitors enjoy spending time at Creek Street, a historic boardwalk built on pilings over the creek, which is now filled with shops, cafes, and galleries. Grab a bite to eat at The Alaska Fish House with beautiful views out the window and live music. Or order crab and seafood at Ketchikan Crab & Go, a seasonal spot at Salmon Landing that caters to the cruise-season crowd.
Valdez
Found in Southcentral Alaska, Valdez is known for its stunning mountain views, water scenery, and being the southern terminus of the Trans-Alaska Pipeline. This former Gold Rush town is a popular destination for fishing, glacier tours, and wildlife viewing, and is accessible via the Richardson Highway from Anchorage and Fairbanks. For shore views of icebergs and the face of Valdez Glacier, head to Glacier View Park at the end of Airport Road. For an easy family-friendly outing near town, try Dock Point Trail, a short coastal loop with ocean and Duck Flats views. In summer, The Potato serves handmade comfort food and beer or wine from its harbor-view location in Valdez. Or get some pizza or fish and chips at The Fat Mermaid. It has a laid-back setting and views of the marina.
Wrangell
Wrangell is found in Southeast Alaska, located on Wrangell Island in the Inside Passage, and is known for its Tlingit culture, variety of wildlife, and access to the Stikine River. This is one of Alaska’s oldest towns and offers plenty of outdoor activities like hiking, glacier exploration, and fishing, and is only accessible by air or the Alaska Marine Highway. Anan Wildlife Observatory is a must-visit to see bears, both black and brown, who call it home. You’ll have to take a boat or a floatplane to get there. Access the Stikine River from Wrangell for more wildlife viewing. For food, try Filipino, Thai, sushi, and other Asian dishes at Michelle’s Taste of Asia, a casual, family-run restaurant. Or grab pizza at Hungry Beaver Pizza and Marine Bar by Wrangell’s Inner Harbor.
These eight towns show a side of Alaska that operates at a different pace from the state’s most visited destinations. The downtowns are small, the history runs deep, and the wildlife has a way of showing up whether you plan for it or not.
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