New York-based Glenfarne Group is the company in talks with state officials and local utilities to lead development of both the $44 billion Alaska LNG Project and imports of liquefied natural gas to address the upcoming shortfall of Cook Inlet natural gas — where demand is expected to outpace supply as soon as winter 2026.
If the agreement moves forward, Alaska’s will be the third LNG project under Glenfarne’s umbrella, joining others in Texas and Louisiana that similarly have been long-gestating and yet to begin construction.
Gov. Mike Dunleavy and the Alaska Gasline Development Corporation on Monday, Jan. 6 announced that the corporation had reached an agreement with an unnamed company “to privately lead and fund the development of the Alaska LNG project, including the Arctic carbon capture plant on the North Slope, the LNG export facility in Nikiski, and the pipeline.”
State officials declined Monday to name the company until a legally binding development agreement could be signed, teasing a larger announcement in the coming months.
On Wednesday, political website “The Alaska Landmine” first reported on X, formerly known as Twitter, that Glenfarne was that unnamed company. Glenfarne in a statement to the Clarion on Wednesday night confirmed that they had entered into two exclusive agreements, with AGDC to develop the Alaska LNG Project and with Enstar Natural Gas to advance “an LNG import project” using the export facility in Nikiski. Glenfarne didn’t respond to any more detailed questions about the project and their involvement.
Thursday morning, AGDC confirmed that they had entered a “framework agreement” with Glenfarne, but that they wouldn’t have anything further to say until that larger announcement that AGDC President Frank Richards teased on Monday.
Enstar, similarly, on Thursday in a statement from President John Sims said that they had entered into an agreement with Glenfarne, which he called “an important step to bringing new gas volumes to southcentral Alaska.”
“While we are optimistic about this progress, we are still in the early stages with a long road ahead of us before we are able to discuss project details,” he wrote.
Richards during Monday’s press release said that the agreement with Glenfarne was secured because of the “critical” recent creation of a $50 million line of credit issued to AGDC by the Alaska Industrial Development and Export Authority.
Richards told the Alaska Legislature’s House Resources Committee in November that an unnamed partner wouldn’t pursue the project unless the state could provide assurance funding. If Glenfarne completes the design work and then decides not to develop the pipeline, the state will pay them back their expenses, limiting their necessary investment in the project.
AIDEA passed a resolution extending the line of credit to AGDC in December and Dunleavy has asked the Alaska Legislature to pass a bill appropriating $50 million from Alaska’s general fund to fund it.
Glenfarne was founded in 2011 by Brendan Duval, who serves as CEO. According to their website, they acquired the Magnolia LNG Project in Lake Charles, Louisiana, in 2020 and also own the Texas LNG Project in Brownsville, Texas.
In 2022, Glenfarne founded internal company Glenfarne Energy Transition to respond to the “global energy transition” through development of LNG projects, grid stability and renewables.
That transition, per a news release by Glenfarne published on Oct. 3, 2022, reflects the need for the world to “adopt renewables at an accelerating rate to fight climate change and achieve energy security.” The global ecosystem lacks the infrastructure for renewable sources, the release says, and LNG is the “environmentally sensible” solution to fill need while that infrastructure is developed.
Duval on a Nov. 23 episode of the Energy Cast Podcast, said LNG is a “flexible fuel,” one of three prongs of his company’s approach to “the energy transition.” In addition to LNG, Duval called for more investment and development in wind and solar energy during the podcast.
LNG projects became more enticing, Duval said, when Russia invaded Ukraine and political and economic pressures began to drive an interest to get European countries away from Russian gas. That explanation and opportunity was similarly cited by Richards during the Monday press conference.
Duval said in November that though Glenfarne was developing multiple LNG projects, none had yet secured a “final investment decision,” meaning none of the projects had yet secured all the necessary contracts and financing to move forward. He cited Glenfarne’s efforts in Texas and Magnolia as yet to get wholly underway.
Still, he said, there’s demand for LNG around the world and ability in the United States to provide it.
“By the time these facilities are built, even if we don’t build all of the permitted ones, the U.S. will become the largest LNG exporter globally,” he said. “For those of us in the business, we’re very proud of what we’re doing for the energy transition.”
Reach reporter Jake Dye at jacob.dye@peninsulaclarion.com.
