AGDC outlines $10.8B Alaska LNG phase 1 pipeline plan to committee

The Alaska State Legislature's House Resources Committee convened on April 9, 2025, to discuss significant developments regarding the Alaska LNG project. The meeting focused on the construction of a new liquefaction plant and the associated pipeline infrastructure, which aims to deliver natural gas from the North Slope to South Central Alaska and Fairbanks.

During the session, representatives inquired about the utilization of existing infrastructure for the project. It was confirmed that the new liquefaction plant will be built south of the Agrium dock and pier, featuring a longer pier to accommodate larger LNG carriers. The project is estimated to cost approximately $10.8 billion for the initial phase, which includes a 42-inch diameter pipeline without compressor stations.

Concerns were raised regarding legal protections for the state to ensure that investments, such as a proposed $50 million backstop from the Alaska Development Corporation (ADA), would not be misused by the project developers. It was clarified that discussions are ongoing, but no formal agreements have been executed yet. The project is designed to ensure that the state receives a pipeline rather than merely an import facility.

The committee also discussed the project's phases, with Phase 1 focusing on the pipeline and Phase 2 involving the construction of a gas treatment plant and liquefaction facilities. The total estimated cost for Phase 2 is around $33 billion, which includes significant investments in infrastructure.

A key point of discussion was the independent evaluation conducted by Wood Mackenzie, which assessed the economic viability of the Alaska LNG project. The analysis indicated that the project could deliver gas at a lower cost than imported LNG, potentially creating jobs and stimulating economic activity within Alaska.

The meeting concluded with a commitment to continue discussions and presentations on the project, highlighting the importance of moving forward to secure the state's energy future. The legislature's support and oversight will be crucial as the project progresses, ensuring that it meets the needs of Alaskan communities while safeguarding state interests.