Alaska LNG Project Gains Momentum Amid Uncertainty Over Commercial Viability

The long-stalled Alaska LNG project is finally gaining momentum after years of uncertainty. The project aims to transport natural gas from the North Slope in northern Alaska through an approximately 800-mile pipeline to the southern port of Nikiski, where it will be liquefied and shipped to buyers.

The total project costs are estimated at $44.5 billion to $54.5 billion, with a production capacity of up to 20 million tons of LNG per year. The project has been coveted since the discovery of the gas field in 1968 but has never moved into full development due to recurring disputes over its enormous costs and economic viability.

Korea Gas Corporation examined the possibility of joining and investing in the project in 2017, but ultimately did not follow through. ExxonMobil, BP, and ConocoPhillips had also reviewed the project in 2014, only to withdraw one by one by 2017 due to prohibitive costs.

Glenfarne Group, the US energy infrastructure developer leading the project, has failed to secure the volume of purchase agreements it had targeted. However, Glenfarne CEO Brendan Duval said that 'it takes three years to build the pipeline, and we can break ground as soon as financing is in place.'