Alaska LNG Gains Momentum Through Two-Phase Development

Alaska LNG

Glenfarne’s Phased Approach Reduces Risks for Alaska LNG

Alaska LNG’s two-phase financing strategy is designed to reduce investment risks and improve project viability. Glenfarne Energy Transition, the lead developer with a 75% stake, plans to separate the $44bn project into two independent stages. The first stage includes a North Slope gas treatment plant and a 765-mile pipeline delivering gas to Anchorage, where shortages are expected by 2027.

By structuring the project with separate final investment decisions (FIDs), Glenfarne avoids the pitfalls of the 2016 attempt by ExxonMobil, BP, and ConocoPhillips, which collapsed due to high upfront risks. Glenfarne’s phased approach ensures that each stage is financially viable and attractive to both creditors and offtakers.

Domestic Supply Security and LNG Export Potential

The initial phase secures gas supply for Alaska’s largest population center while laying the foundation for LNG exports. The 3.5bn ft³/d pipeline would transport sufficient gas to meet domestic needs and supply the future liquefaction facility in Nikiski.

If developed, the second phase would add compression capacity, a 42-mile connector pipeline, and a 20mn t/yr LNG terminal. Glenfarne has already received regulatory approval from the US Federal Energy Regulatory Commission and export authorizations from the Department of Energy, positioning the project for international market entry.

Strong International Interest in Alaska LNG Volumes

Asian buyers are showing strong demand for Alaska LNG, signaling export market viability. In June, Glenfarne announced receiving more than $115bn worth of bids from over 50 companies. Taiwan’s CPC signed a preliminary deal in March, while the Philippines and Thailand have expressed interest in future volumes.

Geopolitical dynamics also play a role, as former US President Donald Trump has urged Asian allies to invest in Alaska LNG in exchange for trade concessions. These developments highlight the project’s potential to strengthen US energy ties in the Asia-Pacific region.

The Metalnomist Commentary

Alaska LNG’s revival through Glenfarne’s phased financing marks a strategic shift in US LNG project development. By ensuring domestic gas security while targeting Asian demand, the project balances local needs with global energy ambitions. However, execution risks remain high, especially in financing and geopolitical stability, which will determine whether Alaska LNG becomes a cornerstone of US energy exports.