Glenfarne Group LLC

On today’s episode of the Kenai Conversation, we’re checking in on the status of legislative tax breaks for the Alaska LNG Project and where the project stands now. Up first, we’re joined by Adam Prestidge, president of Alaska LNG for developer Glenfarne.

“This has been billed as the bill that either makes a pipeline be built or does not make a pipeline be built, and that just really is not true,” said Soldotna Republican Rep. Justin Ruffridge.

In attendance were representatives of would-be gas buyer Donlin Gold, a Greek shipping company called Danaos and Korean steel supplier POSCO.

The announcement described a smattering of new nonbinding agreements that cover gas supplies from ExxonMobil and Hilcorp, roughly two-thirds of the steel needed for the pipeline and construction services.

Through the partnership the company would “facilitate the construction and operation” of at least six liquefied natural gas carriers.

Under the nonbinding agreement, Glenfarne would lend Donlin its pipeline expertise and Donlin would buy natural gas from Glenfarne.

The consultants say property taxes, production royalties and permitting are all areas state lawmakers may need to address.

The needs are in industries you might expect: 1,900 engineers, 1,600 pipefitters and welders, 450 ironworkers, 400 electricians and 3,500 logistics professionals.

Glenfarne celebrated the preliminary Tokyo Gas agreement in a press release for pushing the project over the halfway mark of its LNG export capacity.

Alaska LNG Project President Adam Prestidge doesn’t fault people for being skeptical about the project’s success. But he expects the skepticism to “fall away” as the project advances.