Alaska Natural Gas Pipeline 11-3-25

Recent developments for the Alaska natural gas pipeline project, led by majority developer Glenfarne Group, involve securing preliminary agreements with Asian utilities and moving toward a final investment decision (FID) on the project's first phase. The state of Alaska, which holds a 25% stake, is progressing with engineering plans for the in-state portion of the pipeline.  

October 2025 highlights

Preliminary deals with Asian buyers: In late October, Glenfarne announced a letter of intent (LOI) with Japan's Tokyo Gas to purchase 1 million tonnes per annum (MTPA) of liquefied natural gas (LNG). This marks the fifth preliminary offtake agreement Glenfarne has signed in 2025, bringing the total committed volume to 11 MTPA out of a target of 16 MTPA required for a financial close.

Targeting FID on domestic pipeline: Glenfarne is developing the project in two phases. Phase one includes the domestic pipeline to provide natural gas to Southcentral Alaska. Developers expect to make a "go/no-go" decision on this first phase by the end of 2025.

Engineering and design study: A key engineering and cost study, known as the Front-End Engineering and Design (FEED) study, is on track to be completed by the end of 2025. This was confirmed by U.S. Interior Secretary Doug Burgum in mid-October.

Preparation for workforce and construction: In anticipation of a potential FID, the Alaska Workforce Investment Board issued a request for proposals (RFP) on October 27 to update the project's workforce plan. The project is aiming for a potential construction start date in 2026.

Continued cost concerns: Despite progress on offtake agreements, the project still faces significant challenges, particularly regarding its multi-billion dollar cost. The exact current cost is not public, but analysts and critics remain skeptical about its economic viability. 

Project overview and ownership

Majority ownership: Since March 2025, Glenfarne Group, a private energy asset developer, has owned 75% of the project.

State ownership: The Alaska Gasline Development Corporation (AGDC) retains a 25% stake in the project.

Project components: The project includes an 807-mile pipeline from the North Slope to a liquefaction facility in Nikiski, designed to serve both Alaskan domestic needs and international export markets. 

As of late October 2025, the developer of the Alaska LNG project has secured a preliminary agreement with Tokyo Gas, moving the project closer to a final investment decision. The company, Glenfarne Alaska LNG, also expects to complete a key engineering and cost study by the end of the year. Despite progress, some analysts remain skeptical of the project's economic viability. 

Key project updates (October 2025)

Tokyo Gas agreement: On October 28, Glenfarne Alaska LNG and Tokyo Gas signed a Letter of Intent for the annual purchase of 1 million tonnes of liquefied natural gas (LNG). Tokyo Gas was also the project's very first buyer of LNG exports when it entered into an agreement with Alaska 55 years ago.

Progress toward financial close: This new letter of intent is the fifth secured by Glenfarne, bringing the total committed volume to 11 million tonnes per year. Glenfarne has stated that it needs a total of 16 million tonnes in commitments to reach a financial close for the project.

Engineering study nearing completion: The engineering and cost validation study, known as Front-End Engineering and Design (FEED), is being prepared by the Australian firm Worley and is expected to be completed by the end of 2025.

Skepticism remains over viability: Despite the positive announcements from the developer, some independent analysts and environmental groups continue to cast doubt on the economic feasibility of the pipeline, citing the project's immense cost (previously estimated at $44–85 billion) and a lack of firm, legally binding agreements.

Potential 2026 construction: After meeting with the project's president, the Consular Office of Japan in Anchorage indicated that construction could begin as early as 2026. 

Background

The Alaska LNG project proposes an 807-mile natural gas pipeline from the North Slope to a liquefaction facility in Nikiski, located on the Cook Inlet.

The project is being developed in two phases: the first phase includes the domestic pipeline to serve Alaskans, with the export facility making up the second phase.

Glenfarne Group became the majority owner and lead developer in March 2025, taking over the role from the state-owned Alaska Gasline Development Corporation (AGDC).

The project is not impacted by the Biden administration's 2024 pause on new LNG export authorizations, as it had already received its federal permit. 

https://www.google.com/search?q=alaska+natural+gas+pipeline+project+update+october+30+2025

Comments

Our Asian Allies have agreed to import their Natural Gas from the US and reduce its imports from Russia as US LNG becomes available.

Norb Leahy, Dunwoody GA Tea Party Leader