An important decision on the construction of the proposed 807-mile trans-Alaska-Eraska-Erdgaspipeline is expected until the end of the year.
Rex Cannon, co-president of Pipeline Developer 8 Star Alaska, told the participants of the annual conference of the Alaska Oil and Gas Association that his company intended to complete gas sales agreements and then to make a final investment decision for pipeline construction work before the end of the fourth quarter of 2025.
If the project progresses until completion, it would end more than 50 years of false starts, missed goals and promises of a large number of developers.
“I am happy about the gas line because I like an outsider story,” Governor Mike Dunleavy told the conference participants after standing in the back of the conference hall and looking at Cannon's presentation.
“(We are) incredibly tight. I will only set the champagne bottle until the contract is signed and the tube is built and welded.”
Glenfarne, an international energy company, Bought 75% of the proposed AKLNG project At the beginning of this year from Alaska Gasline Development Corp., a state company. AGDC maintains 25% of the project.
Your joint venture is called 8 -star -Aska and refers to the eight stars on the Alaska flag.
As part of the latest plan of the pipeline project, it would be built in two phases.
In the first phase, the construction of the pipeline itself would be built along a route from the north slope to the west side of the cook inlet, where it would be connected to the existing gas distribution system of the anchorage area.
These efforts, which are planned for completion by 2029, would be for use in the state.
It would be used either by point Thompson or points An underdeveloped oil and gas project Near the Dalton Highway to SouthCentral Alaskaner which are exposed to a defect.
In February 2024 AGDC estimated That the first phase would cost at least 11 billion US dollars.
A spokesman for Glenfarne said after the presentation of Cannon that the first phase could be built, even if 8-stars could not export gas to international customers.
“Phase 1 is the core of the solution of Alaska's natural gas crisis, as it is financially profitable as an independent part of the project and is important to bring Alaska's gas to the global markets,” they said by e -mail.
Phase 2 would include the installation of a gas system on the northern slope, an export connection on the Kenai peninsula and compressor stations along the pipeline to increase the gas volume that the pipeline can wear.
This is expected to cost more billions of dollars.
The initial phase of the pipeline would not need the compressors, since the demand in the state is so much lower than for export, said Cannon.
This first phase would not need the gas system that designed carbon dioxide from the gas from shipping before shipping in the pipeline, since the initial gas sources that are to be used at the northern tendency do not contain much carbon dioxide.
Since the pipeline is not installed in time to prevent gas shortages in SouthCentral, Cannon intends to build a gas import system on the site of its future export connection.
The import terminal is One of three currently planned for Cook Inlet. At a future time, Cannon said that the import terminal could be turned over to flow in the opposite direction and become part of the export system.
The biggest obstacle to the construction of a trans-alaska earth gas pipeline has been the costs and the need to finance its construction for decades.
In response to questions on Thursday, Cannon said the company had “two fronts” in terms of financing.
At a front “we work directly with the Energy Ministry with your credit program office and there are some options there,” said Cannon.
On the other hand, the company is looking for loans from banks and “institutional investor types to finance a project essentially in which all key contracts are available”.
This would require 8 stars to sign contracts with supply companies – either in Alaska or elsewhere – who are interested in buying gas from his pipeline.
At full capacity, the pipeline would wear 20 million tons of natural gas a year.
“So far we have signed where we are, either letter of intent or essentially cooperation agreements with both PTT from Thailand And CPC from Taiwan deliver about 8 million tons of LNG. This leaves around 12 of the 20 million tons per year. We are in negotiations for more than this 12. To be honest, it will be a kind of question who arrives there first. “
PTT and CPC each are state oil and gas companies. The country's commitment is still 100% firm.
South Korea and Japan were often mentioned as possible customers for Alaska gas, but no country has committed to this day. At the beginning of this week Nikkei Asia Interviewed experts Who said they believe that the costs for Alaska gas are probably too high to get a deal soon.
With participants of the Aoga conference in Anchorage, Cannon spoke optimistically about the prospects of a deal and said 8 stars request bids from companies that may deliver the pipe that makes up the pipeline.
“We have already triggered 15 different mills and suppliers from all over the world, Asia, North America and Europe. We are in the middle of a selection process with first -class contractors for the construction of pipeline,” he said.
The company does not have the full right of way of the pipeline, he said, but the company is “95% there on the way before the way. What remains in the procedure … is really under negotiations or I would say well in hand.
Cannon did not mention the possibility of a legal dispute to slow down or stop the project. Every larger oil and gas project in Alaska was suspended with lawsuits.
At the end of his presentation, Cannon signed a ceremonial agreement with the state and the federal government, which affects the route of the pipeline by the Denali National Park.
“As I said, it is like Christmas every day” An earlier comment that praised the Trump administration. Then he spoke about the pipeline.
“This is just an example of the speed at which you move and it will be astonishing five months.”
