$44 billion Alaska LNG approaching FID: Partner hunt underway, Worley on final engineering duty

By putting Australia’s Worley in charge of the final engineering works, Glenfarne Alaska LNG, a subsidiary of Glenfarne Group, is edging closer to a final investment decision (FID) for a liquefied natural gas (LNG) export project in Alaska, as a majority owner and lead developer together with its joint venture partner, the State of Alaska’s Alaska Gasline Development Corporation.

Glenfarne has disclosed that Worley, tasked with undertaking additional engineering and preparing a final cost estimate for the Alaska LNG pipeline in sufficient detail to achieve FID for the project, has begun its assignment. The firm will use and supplement the package of previously completed engineering work and update the cost of the pipeline.

In addition, the company has 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 lead developer of this LNG project has launched a strategic partner selection process to team up with companies that support its execution efforts and have complementary expertise to help bring this development to life.

Brendan Duval, CEO and Founder of Glenfarne Group, commented: “The declining gas production from Cook Inlet risks Alaska’s energy security, as well as U.S. national security and military readiness. Prioritizing the development and final investment decision of the pipeline is essential to solving the natural gas shortages which are already impacting the state.

“Glenfarne is pushing Alaska LNG forward with expediency engaging prospective strategic partners. 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.”

With a cost estimate of $44 billion, the Trump administration has turned to Asian investors, such as Japan, South Korea, and Taiwan, to lend a hand in financing the Alaska LNG project. The 807-mile 42-inch Alaska LNG pipeline is envisioned to be capable of transporting enough natural gas to meet both Alaska’s domestic needs and supply the full 20 million tons per annum (mtpa) Alaska LNG export facility. The final investment decision for this pipeline is anticipated in 2025.

As this pipeline will be constructed in two phases, Phase One will deliver natural gas approximately 765 miles from the North Slope to the Anchorage region, and Phase Two will add compression equipment and around 42 miles of pipeline under Cook Inlet to the Alaska LNG export facility in Nikiski constructed concurrently with the LNG export facility.

Mark Trueman, President Americas at Worley, remarked: “As a full project delivery company with a strong track record in Alaska and supporting LNG projects, we’re honored Glenfarne has chosen Worley to help deliver the Alaska LNG project. Our specialist team is well placed to support Glenfarne in moving this vital project forward, improving energy security for Alaska and the world.”

Glenfarne Group, as the owner of Texas LNG, which recently fully sold out its capacity, expects the final investment decision later this year. The firm’s other affiliates entail what is described as the largest importer of LNG into Colombia and Magnolia LNG, a late-stage LNG export project in Lake Charles, Louisiana. Together with Alaska LNG, the firm’s permitted LNG portfolio totals 32.8 mtpa of capacity under development.

Another Alaskan LNG terminal, Kenai LNG, which recently changed hands, is set to move forward by repurposing existing assets to allow additional natural gas supplies as early as 2026, with full-scale operations beginning as early as 2028.