Alaska LNG Project Faces Doubts Over Commercial Viability Amid Competition

The Alaska LNG project is a proposed $44.5 billion to $54.5 billion development aimed at transporting natural gas from Alaska's North Slope through a pipeline to domestic consumers and eventually an export terminal for overseas buyers.

The project, owned by Glenfarne Group with the state of Alaska holding 25%, involves constructing an 800-mile pipeline from the North Slope to an LNG liquefaction facility in Nikiski. The project aims to take a final investment decision on the pipeline in 2026, followed by the export facility in 2027, with first LNG exports targeted for 2031.

So far, Alaska LNG has lined up agreements covering 13 million metric tons per year from buyers in Japan, South Korea, Taiwan, Thailand, and French major TotalEnergies. However, it needs agreements for another 3 million tons to secure financing for the project.

LNG buyers have been seeking more diverse supply sourcing since the US-Israeli war against Iran cut off Gulf shipments, but interest in Alaska LNG remains cautious due to concerns over commercial viability and competition from lower-cost US Gulf Coast exports and Canadian projects targeting Asian markets.