‘Expressed interest’ in an Alaska LNG pipeline said to be over $115 billion
Announcement comes as Trump officials visit Alaska to talk energy
ANCHORAGE, Alaska (KTUU) - Glenfarne Alaska LNG, who is a lead developer for an Alaska LNG pipeline, announced that over 50 companies have “formally expressed interest for over $115 billion of contract value.”
Glenfarne wrote that companies from the United States, Japan, Korea, Taiwan, Thailand, India, and the European Union are among those expressing interest.
The announcement came hours before a press conference with members of President Trump’s cabinet at the Alaska Sustainable Energy Conference, who again, endorsed the project.
“[Trump’s] giving us clear direction, he wants this thing built,” said Secretary of the Interior Doug Burgum. “He knows it’s important for Alaska. He knows it’s important for the country’s prosperity. He knows it’s important for national security. He knows it’s important for our allies.
“He wants to see a job well done. He wants to see it done quickly.”
While the Trump administration - as well as Alaska Governor Mike Dunleavy and Senator Dan Sullivan - have repeatedly endorsed an LNG pipeline, some say it’s far from a reality.
“You need contracts to show you’ve got gas and how much it’s going to cost and when it can be delivered,“ said oil and gas analyst Larry Persily. ”You need contractors to say how much it’s going to cost to build the pipeline, the gas treatment plant, the liquefaction plant and when they can be built.
“You need contracts for buyers at the other end who say ‘At that price, at that delivery schedule, I will take X million tons, per year, for 15-20 years’ to cover a mortgage essentially.
"That’s what you need, and they have none of that for this project. They have expressions of interest."
Glenfarne wrote that they anticipate a final decision on investment in the domestic portion of the pipeline by late 2025. Currently, Glenfarne is partnered with the Australian engineering company Worley to come up with a final cost estimate in order to secure investment.
Previous estimates from the Alaska Gasline Development Corp. (AGDC), who is partnering with Glenfarne in the joint venture, estimated the cost between approximately $38 and $44 billion.
Persily said the cost would likely be much higher.
“They say $44 billion, I don’t know anybody who believes that estimate other than the ones repeating it,” Persily said.
The project would be impossible without substantial investment from sources other than the state of Alaska, according to Persily.
Secretary of Energy Chris Wright has indicated there might be federal loans made available, but did not guarantee any amount.
“They’re going to get details of the project to come together, but I think it’s quite likely that you will see loan guarantees provided by the loan program office at the Department of Energy to build the pipeline part of that project,” Wright said at the press conference on Tuesday.
According to Sen. Dan Sullivan (R-Alaska), the pipeline would create “tens of thousands of good-paying jobs” and reduce the U.S. trade deficit by $10 billion annually. While Persily acknowledged construction would add jobs to Alaska’s economy, he said the project likely wouldn’t create as big a boom seen after completion of the Trans-Alaska Pipeline in the 1970s.
“If the Alaska LNG project were built, yes, there would be a construction boom,” Persily said. “Once it’s down, the revenue to the state would be a fraction of what we’ve got off oil, it’s just not as profitable a product to produce.”
Whether or not the “expressed interest” in the pipeline materializes into something more concrete, is yet to be seen.
“Look, I’m 74,” Persily said. “I’m still interested in being a Major League pitcher. It doesn’t go away till you die, but it becomes less and less likely.”
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