Trans-Alaska pipeline decision to come by end of 2025, project leader says
A significant decision regarding the construction of the 807-mile trans-Alaska natural gas pipeline is anticipated by year-end, according to The Alaska Beacon. Rex Cannon, co-president of 8 Star Alaska, announced at the Alaska Oil and Gas Association conference that the company plans to finalize gas sales agreements and make a construction investment decision by the end of Q4 2025. If successful, this project could resolve over 50 years of delays involving various developers.
Earlier this year, international energy company Glenfarne acquired a 75% stake in the proposed AKLNG project from the Alaska Gasline Development Corp., which retains a 25% interest. The pipeline is set to be developed in two phases, The Alaska Beacon reported.
The initial phase will focus on constructing the pipeline from the North Slope to Cook Inlet, connecting with the Anchorage gas distribution system. Set for completion around 2029, this phase aims to address a gas shortage for in-state consumers. Preliminary estimates suggest this phase could cost at least $11 billion.
Notably, this phase can proceed even without exporting gas internationally. The second phase will include a gas treatment plant on the North Slope and an export terminal on the Kenai Peninsula, significantly increasing costs. Cannon emphasized the need for a gas import facility at the future export terminal site due to the pressing gas shortages in southcentral Alaska. This import facility is one of three planned for Cook Inlet and may eventually be converted to assist with exports.
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