Glenfarne Progresses ‘from Planning to Building’ Alaska LNG Pipeline

Mark Trueman, Worley Group president of major projects and programs, says, “Our engagement with this project, one of the most significant energy infrastructure opportunities anywhere in the world, dates back more than a decade. We are honored to be working with Glenfarne to help deliver the Alaska LNG project and improve energy security within Alaska and across the Pacific.”

Glenfarne also announced conditional awards for pipeline construction and materials supply following a multi-round bid process that began with twenty participants.

Among the participants is a joint venture among veteran North Slope heavy contractor Cruz Construction, Fairbanks-based regional Alaska Native corporation Doyon, Limited through its Doyon Energy Services subsidiary, and Texas-based Associated Pipe Line.

Other conditional awards go to Wisconsin-based Precision Pipeline, a subsidiary of MasTec, one of the leading pipeline contractors in North America, and to Price Gregory International, a subsidiary of Quanta Services with a long history in Alaska pipeline construction.

ASRC Energy Services subsidiary Houston Contracting Company is conditionally awarded a joint bid with Wisconsin-based Michels Pipeline. Other joint ventures lined up for the job: U.S. Pipeline and Spiecapag, a subsidiary of VINCI Construction, and a team-up of Montana-based Barnard Pipeline and Italian contractor SICIM.

“These world-class pipeline construction partners were selected based on their qualifications and experience to build the Alaska LNG pipeline, one of the most important pieces of energy infrastructure in the world,” says Duval. “Each has dedicated a significant amount of time and resources in estimating and bidding for these roles, and their early involvement is foundational for this pipeline.”

The conditional awards include comprehensive pricing and technical specifications and reflect specific roles in the multi-spread construction strategy for the Phase One in-state pipeline and a 63-mile, 32-inch lateral pipeline eastward to Point Thomson. Awards remain subject to the completion of definitive construction agreements.

Glenfarne adds that it is continuing to identify opportunities to engage Alaska contractors and businesses in project development and construction.

Agreements for Materials Supply

Phase One would consist of a 739-mile, 42-inch pipeline constructed in four simultaneous sections, or spreads, to deliver natural gas for Alaska’s domestic energy needs. A structure that size will require 700,000 tonnes of API 5L X70 steel pipe. Another 25,000 tonnes would be needed for the Point Thomson Lateral. Following a comprehensive multi-round competitive bidding process, Glenfarne executed preliminary supply agreements for approximately two thirds of the pipe needed.

In addition to an agreement announced last month with Korean steelmaker POSCO International, Glenfarne is sourcing material from Greek manufacturer Corinth Pipeworks and from Europipe GmbH in Germany.

“Our agreements with these line pipe suppliers are a critical step in our development of Alaska LNG. Pipeline production will commence shortly, with delivery into Alaska later this year for the beginning of the construction process,” says Rex Canon, co-president of 8 Star Alaska, the joint venture of Glenfarne and the Alaska Gasline Development Corporation.

Gas Supply Agreements

What gas would go inside the Alaska LNG pipeline? Glenfarne is announcing gas sales precedent agreements with ExxonMobil and Hilcorp Alaska, in addition to previous agreements with Great Bear Pantheon.

Furthermore, ConocoPhillips Alaska President Erec Isaacson adds, “ConocoPhillips remains firmly committed to supporting the State of Alaska and 8 Star as they advance Alaska LNG. We are encouraged by the meaningful progress underway with Glenfarne as lead developer. Looking ahead, we will continue to work closely with Glenfarne and 8 Star to advance gas supply agreements and help position the project for long term success.”

Adam Prestidge, president of Glenfarne Alaska LNG, says, “These agreements, which include pricing, contract length, and other fundamental commercial terms, are a monumental step in achieving the decades-long objective of bringing the benefits of Alaska’s incredible North Slope reserves to Alaskans and to global markets. These partners are leaders in the global oil and gas industry, and we are pleased to have them advancing with us on the project. As we continue to work with these partners and others on the North Slope, we look forward to additional announcements.”

In-State Sales Agreements

At the exit of the Phase One pipeline, who will buy the gas? Glenfarne says it has agreements with major in-state customers to anchor demand. A non-binding letter of intent with ENSTAR Natural Gas Company for a thirty-year supply, depending on further negotiation of definitive agreements and approval by the Regulatory Commission of Alaska.

“This represents a part of the continuous and diligent work between ENSTAR and Glenfarne over the past year,” says ENSTAR President John Sims. “We are optimistic about the historic progress Glenfarne has made toward bringing North Slope gas to market, benefitting all Alaskans.”

Another buyer lined up is Donlin Gold, which recently signed a letter of intent with Glenfarne to purchase natural gas via a separate 315-mile-long pipeline that would power the mine in the Middle Kuskokwim region.

Duval says, “Our agreements with ENSTAR and Donlin help ensure that the pipeline can deliver competitively priced natural gas within Alaska.”

Glenfarne is targeting mechanical completion of Phase One in 2028 and delivery of first gas in 2029.

Export Phase

Phase Two will add the LNG liquefaction terminal and related infrastructure to export 20 million tonnes per year of LNG. For that phase, Glenfarne has secured preliminary commercial commitments from buyers in Japan, South Korea, Taiwan, and Thailand for more than half of the export volume.

Earlier this week, Glenfarne announced a strategic partnership with Greek shipping company Danaos for construction and operation of at least six LNG tankers and a $50 million development capital investment.

“One of Alaska LNG’s major competitive advantages is our short shipping distance to Asia, featuring canal-free routes avoiding contested waters,” says Duval. “Danaos, with their reputation for high-quality ship ownership and operations, is a valued addition to our roster of Alaska LNG strategic partners.”

Danaos currently manages eighty-six vessels and has twenty-five more under construction. Danaos CEO John Coustas says, “This transaction provides us with an opportunity to expand on our expertise in global seaborne transportation and expand the footprint of Danaos in the LNG and energy segments.”

Glenfarne also has a strategic partnership with Baker Hughes as an investor and a key equipment supplier for LNG and power equipment.

While all these pieces are settling into place, Worley is completing the final engineering and cost validation for the pipeline, currently the only federally authorized export terminal on the US Pacific Coast.