By SUZANNE DOWNING
June 15, 2026 – Another Alaska utility has stepped forward to secure future supplies of North Slope natural gas, as momentum continues to build behind the Alaska LNG project during the final days of the Legislature’s special session.
Glenfarne Alaska LNG announced Monday that it has signed a Letter of Intent with Chugach Electric Association to negotiate the future delivery of North Slope natural gas through the proposed Alaska LNG pipeline.
The agreement is non-binding but marks another significant commercial milestone for the project, which is seeking to lock in both export customers and in-state users as lawmakers debate tax and regulatory changes designed to improve the project’s economics.
Chugach Electric, Alaska’s largest electric utility, serves more than 90,000 members in the Anchorage area and has warned in recent years about the long-term challenges facing Southcentral Alaska’s dwindling Cook Inlet gas supplies.
Under the Letter of Intent, Glenfarne and Chugach will continue negotiations on terms for supplying North Slope gas to the utility through the 807-mile Alaska LNG pipeline.
“Chugach Electric Association is committed to providing its customers with safe, reliable, and affordable electricity,” the companies said in a joint announcement. The Letter of Intent is intended to clarify key terms as negotiations continue.
The announcement comes just weeks after Glenfarne revealed it is negotiating with utility company Enstar Natural Gas on a separate agreement for North Slope gas deliveries to Southcentral Alaska.
Taken together, the agreements signal growing interest among Alaska utilities in securing future gas supplies from the North Slope as concerns mount about Cook Inlet production declines.
The Alaska LNG project would transport natural gas from the North Slope to Alaska communities and an export terminal in Nikiski. Glenfarne is developing the project in two phases. The first phase focuses on construction of the in-state pipeline to supply Alaskans with natural gas. The second phase would add the liquefaction and export facilities needed to ship liquefied natural gas to overseas markets.
The project is currently owned 75 percent by Glenfarne and 25 percent by the state-owned Alaska Gasline Development Corporation.
Monday’s announcement also lands as the Alaska Senate faces a rapidly approaching June 19 deadline to act on legislation that would establish a construction-period tax framework for the project. Supporters argue the legislation is critical to making the project financially competitive and bankable, while opponents have raised concerns about local government revenues and community impacts.
For project advocates, the Chugach agreement provides another piece of evidence that Alaska’s largest utilities are preparing for a future in which North Slope gas becomes the primary energy source for Southcentral Alaska.
If built, Alaska LNG would include an 807-mile, 42-inch natural gas pipeline stretching from the North Slope to Southcentral Alaska, with the capacity to supply Alaska communities while supporting exports of up to 20 million metric tons of liquefied natural gas annually.
