On Monday morning, the lead developer of a natural gas pipeline megaproject in Alaska took two busloads of current and prospective partners on a site tour of a proposed export terminal in Nikiski. Multiple attendees were a little distracted by the debate 600 miles away over what may be make-or-break legislation.
Dozens of people made their way off buses and into a white tent perched on a bluff overlooking Cook Inlet. Hulking machinery from a mothballed fertilizer plant loomed nearby.
There were representatives of would-be gas buyer Donlin Gold, a Greek shipping company called Danaos and Korean steel supplier POSCO, to name a few. Some wear white baseball caps, sip from water bottles, and freshen their breath with mints – all items branded “Alaska LNG” or “Glenfarne Group.” They’re representing new, existing or prospective partners of the project.
Also represented Monday was ExxonMobil, with which Glenfarne announced a preliminary gas supply agreement earlier that day. Glenfarne says the deal would help the project supply enough natural gas to meet Alaska’s in-state energy needs.
In the tent, Brendan Duval picked up a microphone and explained the significance of the dirt beneath them.
“Where we sit today is the actual location of where the LNG facility will be built,” he said.
Duval is the CEO of Glenfarne Group. Last year, the energy infrastructure developer became the majority owner of the state’s decades-old natural gas pipe dream, the Alaska LNG Project. If it’s built, the project would treat North Slope natural gas and move it through a roughly 800-mile pipeline to a liquefaction facility in Nikiski for export overseas.
A recent survey of around 1,600 Alaskans found most generally support the project. But the project’s steep cost has long stalled progress. The most recent estimate puts the total project price tag at around $46 billion for the treatment plant, the 42-inch pipeline and the Nikiski export and liquefaction facility.
That’s where Monday’s group comes in.
“This is a global-scale project,” he said. “We need the best partners in the world, not just in the country, in the world, and most of those partners are in the room here today.”
KDLL was not permitted to speak to attendees not affiliated with Glenfarne as part of the visit.
Glenfarne hasn’t fully committed to the Alaska LNG Project. It’s still working toward a final investment decision, which was initially expected last year. On Monday, Duval said they now hope to make a decision on the project’s first phase by the end of this year.
Monday’s visit is a sort-of kickoff to this year’s Alaska Sustainable Energy Conference, at which Glenfarne is scheduled to be a primary participant. The event draws attendees from around the world, and that was true Monday, too.
Matt Kissinger is the commercial director for the Alaska Gasline Development Corporation. That’s the state agency that owns a quarter of the project. Standing on the Nikiski bluff, he said the region has “seen its share of boom and bust.”
“What we offer is sort of another rebirth for this area, in a sense,” he said. “I think most people, if not all, are really pretty excited about that.”
Kissinger pointed out to the visitors where they can see Mount Redoubt on a clear day, highlighted the site’s superior soil properties and explained how popular agate hunting is among the locals. His talk continued after the buses drove to Salamatof Beach, where the former Kenai LNG export terminal juts into the inlet.
The day wrapped up at the Kenai Chamber of Commerce and Visitor Center, where the group heard from a trio of local mayors excited about what the project could mean for the central Kenai Peninsula.
“We have a lot of assets here that will be a benefit to this project,” said Kenai Mayor Henry Knackstedt.
Kenai Peninsula Borough Mayor Peter Micciche previously ran the Kenai LNG facility for decades.
“You've got a community that is excited, ready to go to work, ready to partner, ready to get back on the map for getting Alaska gas to Alaskans and global partners throughout the PacRim,” he said.
As Micciche presented on the history of LNG exports in Nikiski, he paused to check his phone.
“We're all watching our phones today, hoping for a certain bill to pass,” he said.
That’s also why Alaska LNG Project President Adam Prestidge wasn’t there. Duval said he was following the Alaska Legislature’s debate.
State lawmakers were actively debating tax break legislation for the AK LNG Project that Glenfarne says would make it more economical. The bill would exempt the project from the state’s 2% property tax on land used for oil and gas purposes. Instead, Glenfarne would pay taxes based on the amount of gas flowing through the pipeline. Revenue would be split between the state and communities hosting parts of the project, including the Kenai Peninsula.
State lawmakers only have through Wednesday night in the regular legislative session. Dunleavy has said he will convene a special session if they don’t pass a tax cut by their deadline.
