The Alaska Gasline Development Corporation AGDC has announced significant progress on its $44 billion natural gas pipeline project, which aims to connect the North Slope to Nikiski. During a recent energy press conference, AGDC President Frank Richards revealed that the corporation has reached an exclusive framework agreement with a qualified energy company to lead the project. While the name of the company has not been disclosed, it is described as having extensive experience in U.S. and international natural gas and LNG operations.
This agreement follows nearly eight months of discussions and is a critical step toward moving the project forward. AGDC aims to finalize legally binding development agreements in the coming months.
The announcement follows the Alaska Industrial Development and Export Authority’s approval of a $50 million line of credit for updating the project’s engineering and design work, which Richards said was essential to securing the framework agreement.
The pipeline project, initially proposed decades ago, has faced challenges due to high costs and uncertain demand. However, it has gained new momentum in light of the global energy crisis, especially following Russia’s invasion of Ukraine.
Governor Mike Dunleavy expressed cautious optimism about the project, acknowledging that while he has had reservations in the past, the current developments suggest a more realistic possibility of progress.
Once a final investment decision is made, the state could contribute up to 25% of the project’s costs. Governor Dunleavy and state lawmakers will ultimately decide whether the state should have equity in the final project. AGDC expects to finalize the agreement soon, with work on front-end engineering and design to begin shortly thereafter, bringing the project one step closer to construction.