Glenfarne Exec: Gasline Momentum ‘Is Real’
Two paths lie ahead for the Alaska liquified natural gas pipeline project: the Korean financing route and a private financing route. Both paths commit to building the 800-mile gasline from the North Slope to Southcentral, according to Adam Prestidge, president of Glenfarne Alaska LNG.
“Momentum, like trust, is one of those things that takes time and effort and investment to build,” Prestidge shared at the Resource Development Council for Alaska (RDC) annual convention in Anchorage. “Picture a car speeding up, building that momentum as it speeds down the road. The driver’s task behind the wheel is to maintain that momentum through the twists and turns.”
The Paths Forward
The twists and turns involve both Seoul and Juneau. The South Korean government is evaluating the commercial viability of investing in the project through a framework with the US Department of Commerce. This framework, announced at the White House in September, offers an alternative to the path Glenfarne pursued six months ago when the Alaska Legislature declined to reform taxes on properties the pipeline would cross.
Prestidge explains that the bill became overly complicated and ultimately failed to pass after three special sessions. Under the Korean scenario, property taxes wouldn’t be an issue. A bilateral investment framework would establish a Korea-US Strategic Investment Corporation, overseeing a $200 billion portfolio of US infrastructure and energy projects, including Project Star, a $22.3 billion power plant in Texas.
A similar subsidiary, Project North, would acquire Glenfarne’s 75 percent stake, transforming the company’s role to project manager while the state-owned Alaska Gasline Development Corporation retains the other 25 percent. According to Prestidge, government ownership would exempt the pipeline from property taxes.
“We’re currently in detailed discussions with the [US] Department of Commerce on how to structure this project to facilitate that investment,” Prestidge says, calling it the fastest path. “Korean investment into this project, through the US Department of Commerce vehicle, would essentially mean an immediate final investment decision (FID) across the entire project and allow us to commence work almost instantly.”
A Slower Alternative
A slower path would involve waiting for the Alaska Legislature to consider tax reform again in 2027.
“I believe that this government has the power to control how quickly this project brings energy relief to Alaskans,” says Prestidge. “We’ve had the debates; we’ve had the hearings. Now the future of this project rests with the legislature and a new governor.” He urges new officials to prioritize the project, stating, “Unified leadership in the administration and the legislature creates a new window of opportunity.”
Polls show strong public support for the project, with over 80 percent approval. “The approval rate for Alaska LNG is even higher than the approval rate for apple pie,” noted Prestidge.
Glenfarne aimed to reach FID by the end of last year. Contractors were prepared for construction this winter, targeting completion of Phase 1, for in-state gas use, by the end of 2029.
At the RDC conference, Prestidge didn’t mention any changes to the timeline, except to state that they await legislative and regulatory approval.
“Because these milestones are completely outside of our control, it makes it impossible for us to pinpoint exactly when FID will occur,” concluded Prestidge. “But we can be sure that under this private path forward, the timeline would be longer than it would be under a Commerce/Korea investment path.”