By SUZANNE DOWNING
Glenfarne Alaska LNG, LLC and Donlin Gold LLC announced today that they have signed a letter of intent to explore supplying natural gas from the Alaska LNG pipeline system to the proposed Donlin Gold mine in Southwest Alaska.
The agreement also contemplates construction of a new pipeline spur and a power plant to generate electricity for the mine.
Under the letter of intent, which is nonbinding, the companies will work toward a potential natural gas sales agreement for up to 50 million cubic feet of gas per day, along with cooperation on developing an approximately 315-mile pipeline from Southcentral Alaska to the Donlin site and the associated power infrastructure.
“Alaska LNG offers abundant low-cost natural gas that will enhance the economics and facilitate development of energy-intensive mining projects in Alaska,” said Adam Prestidge, president of Glenfarne Alaska LNG. He added that bringing on a large, foundational customer could have ripple effects beyond the mine itself. “Adding a foundational customer like Donlin Gold…provides significant volume discount benefits that will result in lower energy costs for Alaska consumers. As we continue to bring on more pipeline customers, the cost of gas for Alaskans will continue to go down.”
Donlin Gold is jointly owned by NOVAGOLD Resources and Paulson Advisers LLC. John Paulson, president of Paulson, said access to Alaska gas could materially change the project’s outlook.
“A reliable, secure supply of economic natural gas from Alaska LNG has the potential to substantially enhance our ability to unlock value and upside potential in Donlin Gold,” Paulson said. “Glenfarne’s global energy experience is well suited to provide a long-term turnkey energy solution that helps advance this opportunity.”
Greg Lang, president and CEO of NOVAGOLD, explained the potential partnership in broader terms for the region. “As Donlin moves into what we hope to be the largest single gold mine in the United States, natural gas from Alaska LNG could offer significant benefits not only for the mine, but for the entire Southwestern Alaska region,” he said. “We look forward to working with Glenfarne to unlock the value of both of these world-class Alaskan resources.”
For Glenfarne, the letter of intent is another marker of momentum since it became lead developer of the Alaska LNG project in March 2025. The company is advancing the project in two financially independent phases. Phase One centers on a 765-mile, 42-inch pipeline carrying North Slope gas south to meet in-state demand. Phase Two would add an LNG export terminal capable of shipping 20 million tonnes per annum to overseas markets.
Since taking the helm, Glenfarne has announced preliminary commercial commitments totaling 11 MTPA with buyers in Japan, Korea, Taiwan, and Thailand, along with strategic partnerships that include Baker Hughes and POSCO International. Glenfarne owns 75% of Alaska LNG, while the Alaska Gasline Development Corporation holds the remaining 25%.
Donlin Gold itself sits about 10 miles north of the village of Crooked Creek and is considered one of the largest known undeveloped open-pit gold deposits in the world. Alaska Native corporations Calista Corporation and The Kuskokwim Corporation own the mineral and surface estate at the site, lands their early leaders selected specifically for their gold-bearing potential.
The agreement adds to a growing alignment between Alaska’s resource sectors of natural gas and mining after years of stalled ambitions.
4 thoughts on “Alaska LNG gains traction as Glenfarne in talks with Donlin Gold Mine”
Future is ‘very’ bright for AK907!
Hmmm… No mention of the cost to build a pipeline. A few years back I saw a cost estimate attached to the permit process that was approaching $3 Billion. Hard to say what it is today.. but you can bet your as$ that the Donlin partners are going to ask the legislature to co-sign a General Obligation Bond..
Which brings me to why Rep Nellie Jimmie is sitting on the House Finance Committee, courtesy of the Calista Corporation’s arm twisting tactics and Rep Bryce Edgmons need for two things. First he needed Jimmies binding caucus vote for a razor thin majority in the House and secondly, Bryce needed a way to appear at least neutral on the Donlin Mine, considering he’s “opposed” to the Pebble Mine.
Jimmie or Hoffman could start the session with a Bond measure of a Billion bucks for rebuilding, repair or relocation for all the Villages that were nearly destroyed in October from the typhoon. That’s the door opener for Calista to throw in their $3 Billion pipeline project for Calista. In other words let’s play footsies with the people’s money. Business as usual…and it will pass….and it doesn’t matter if we ever build the gasline from the slope to power the mine in Crooked Creek. We can fill that line using LNG at $12 Million a tanker load. It does seem like Glenfarne wants to tie up Donlin for several reasons. First it promotes bigger committed sales for the slope gas line and it helps Glenfarne convince the Legislature that the Railbelt rate payers need to pay double to pay for an second unneeded LNG plant in Cook Inlet.
Unfortunately for everyone wanting a gasline from the slope to tide water, of which I’m one, the gasline to Donlin isn’t needed. What’s needed is a mini nuclear plant that would generate their 10 Megawatts.
Ah, once again “agreeing to explore”. Exploring doesn’t put any money in the bank, folks. Hype all you want, but you can’t wish this white elephant into existence. Remember that Glenfarne has nothing at risk since the State has (once again) agreed to underwrite expenses.
Oh, and the amount of gas that this little gold mine would use is a rounding error for a massive LNG project.
GlenFarm…..go south to Venezuela and do business. You are a bad risk for anything in the USA or Alaska…