Glenfarne Group, the majority owner and lead developer of Alaska LNG, a joint venture with the State of Alaska’s Alaska Gasline Development Corp., has selected Australia’s Worley to undertake additional engineering and prepare a final cost estimate for the Alaska LNG Pipeline to achieve final investment decision (FID) for the pipeline.
This work has started and will utilize and supplement the previously completed engineering work and update the cost of the pipeline. Worley has also been selected as the preferred engineering firm for the Cook Inlet Gateway LNG import terminal and project delivery advisor to Glenfarne across the Alaska LNG projects.
“The declining gas production from Cook Inlet risks Alaska’s energy security, as well as US national security and military readiness,” said Brendan Duval, chief executive and founder of Glenfarne Group. “Prioritizing the development and final investment decision of the pipeline is essential to solving the natural gas shortages which are already impacting the state.”
As final engineering progresses, Glenfarne has launched a strategic process to partner with global firms that can support execution and offer complementary expertise for the Alaska LNG project."
“Glenfarne is pushing Alaska LNG forward with expediency engaging prospective strategic partners,” added Duval. “We are particularly proud to be expanding our relationship with Worley to Alaska LNG from our existing partnership on the Texas LNG project. Worley is one of the world’s largest and most experienced engineering and project delivery firms with a long history of success in Alaska.”
The Alaska LNG Pipeline is an 807-mile 42-in. pipeline capable of transporting enough natural gas to meet both Alaska’s domestic needs and supply the full 20 mtpa Alaska LNG export facility. The pipeline will be constructed in two phases. Phase one will deliver natural gas 765 miles from the North Slope to the Anchorage region. Phase two adds compression equipment and 42 miles of pipeline under Cook Inlet to the Alaska LNG Export Facility in Nikiski and will be constructed concurrently with the LNG export facility.
Glenfarne anticipates FID to be taken on the Alaska LNG Pipeline prior to year-end.
In March, Glenfarne became the majority owner of Alaska LNG. Under the agreement, Alaska Gasline Development Corp. (AGDC) divested 75% of 8 Star Alaska, a subsidiary AGDC created to hold and manage all Alaska LNG project assets, to Glenfarne. AGDC remains a 25% owner of 8 Star Alaska.
Alaska LNG is expected to deliver natural gas volumes from North Slope gas fields, much of it for international markets. The Prudhoe Bay and Point Thomson fields anchor the project on the North Slope. These fields will produce, on average, about 3.5 Bcf/D with approximately 75% from the Prudhoe Bay field and 25% from the Point Thomson field.
