Breaking: Alaska LNG moves into execution phase, Glenfarne announces, including Enstar agreement for purchase of gas

By SUZANNE DOWNING

The Alaska LNG project has officially moved from long-term development phase into early execution phase.

Glenfarne Group subsidiary Glenfarne Alaska LNG announced Wednesday a massive package of agreements and conditional awards that lock in construction management, pipeline contractors, line pipe supply, North Slope gas supply, and in-state customer commitments, marking the most concrete advancement of the project in decades.

The announcements, made by CEO Brendan Duval to the media during a late afternoon press availability,  moved Phase One of Alaska LNG into what company officials describe as the first true build stage of the project, focused on delivering affordable, reliable natural gas to Alaskans before LNG exports begin.

“This is about progressing from planning to building,” said Duval, calling the coordinated agreements a shift toward a “practical, financeable” execution strategy.

The announcement came just two hours before Gov. Mike Dunleavy’s State of the State address.

Alaska LNG is being developed through 8 Star Alaska LLC, which is 75% owned by Glenfarne and 25% owned by the State of Alaska through the Alaska Gasline Development Corporation.

Glenfarne is advancing the project in two financially independent phases:

• Phase One:

  • A 739-mile, 42-inch pipeline from the North Slope to Southcentral Alaska to address the natural gas deficit

  • Built in four simultaneous construction spreads

  • May include the 63-mile Point Thomson lateral line

  • Mechanical completion targeted for 2028

  • First gas targeted for 2029

• Phase Two:

  • LNG liquefaction terminal and export infrastructure

  • Capacity of 20 million tonnes per annum (MTPA) for global LNG markets

Glenfarne has provisionally named Worley Limited as the Engineering, Procurement, and Construction Management provider for Phase One, following completion of engineering work sufficient for a final investment decision at the end of 2025.
The award remains conditional pending a definitive agreement.

After a multi-round bid process involving 20 firms, Glenfarne issued conditional awards for pipeline construction and multi-spread execution. Selected companies include major North American and international pipeline builders, including subsidiaries of MasTec, Inc. and Quanta Services, Inc., along with multiple joint ventures combining Alaska-based contractors and global pipeline firms.

MasTec, Inc. (NYSE: MTZ) subsidiary Precision Pipeline, LLC is a Wisconsin-based firm offering large mainline construction and other services with experience on some of the nation’s largest natural gas pipelines. MasTec is one of the leading pipeline contractors in North America and has constructed more than 12,000 miles of pipeline.

Quanta Services, Inc. (NYSE: PWR) subsidiary Price Gregory International, based in Texas, has a long history in Alaska oil and gas pipeline construction and played a pivotal role in constructing segment three of TAPS. Quanta ranks among the largest companies involved in pipeline construction in North America, handling some of the continent’s biggest and most complex pipeline projects.

Joint bid between Michels Pipeline, Inc. and ASRC Energy Services – Houston Contracting Company, Inc., a subsidiary of ASRC Energy Services, LLC.

o   Michels is a Wisconsin-based diversified pipeline construction company recognized for project excellence worldwide, including work in remote Alaska.

o   Houston Contracting Company is one of Alaska’s largest pipeline construction companies with extensive experience in the Prudhoe Bay oil fields and Trans-Alaska Pipeline System (“TAPS”) maintenance, operations, and construction.

Joint venture between Associated Pipe Line Contractors, Inc., Doyon Energy Services, LLC, and Cruz Construction, Inc.

o   Associated Pipe Line, based in Texas, serves the oil and gas industry with pipeline construction and pipeline integrity.

o   Alaska-based Doyon specializes in arctic pipeline construction and associated infrastructure.

o   Cruz Construction is an Alaska oilfield support and heavy civil construction company with extensive experience on Alaska’s North Slope.

Joint venture between Barnard Pipeline, Inc. and SICIM S.p.A.

o   Barnard is a Montana-based provider of complex and challenging oil and gas transmission projects in all types of locations and conditions.

o   SICIM is an Italy-based international contractor providing EPC services to the energy industry, delivering megaprojects in some of the world’s most remote locations.

Joint venture between VINCI Construction subsidiary Spiecapag and U.S. Pipeline.

o   Spiecapag is a leading international pipeline construction contractor with more than 100 years of expertise in complex environments.

o   U.S. Pipeline is a Texas-based full-service construction company with expertise in pipelines, facilities, and project management operating throughout the United States and select international markets.

The multi-spread construction strategy allows simultaneous builds across different regions of the state, a key factor in accelerating delivery timelines. The work is broken into four approximately 200-mile segments.

All awards remain subject to final construction agreements. Several Alaska contractors are included in the build.

Phase One will require approximately 725,000 metric tonnes of American Petroleum Institute quality steel, 5L X70 line pipe.

Glenfarne executed preliminary supply agreements covering roughly two-thirds of that volume with international manufacturers, with pipeline production scheduled to begin shortly and deliveries into Alaska later this year.

Pipe will be delivered on ships and laid into trenches in January of this year through 2028, and all pipe will be in ground by the end of 2028, with commissioning during the first half of 2029.

Glenfarne also announced multiple gas supply agreements securing North Slope production for Phase One, including Gas Sales Precedent Agreements with:

• ExxonMobil

• Hilcorp Alaska LLC

The project also includes previously announced agreements with Pantheon Resources and continued participation from ConocoPhillips, which reaffirmed its support for advancing gas supply development.

These agreements establish pricing structures, contract terms, and commercial frameworks needed for financing and construction progression.

Glenfarne also announced anchoring demand agreements to ensure Alaska receives North Slope gas first:

• A 30-year non-binding letter of intent with ENSTAR Natural Gas Company to supply Southcentral Alaska (subject to regulatory approval)

• A gas supply and infrastructure agreement with Donlin Gold, including:

  • Up to 50 MMcfd of gas

  • A 315-mile pipeline

  • A dedicated power plant for mine operations

Since becoming lead developer in March 2025, Glenfarne has secured:

• Preliminary LNG buyer commitments in Japan, Korea, Taiwan, and Thailand totaling 11 MTPA

• Strategic partnerships with:

  • Baker Hughes (equipment supplier and investor)

  • Danaos Corporation (LNG carriers and capital investment)

  • POSCO International (investor, LNG offtake partner, steel supplier)

Unlike previous Alaska gasline efforts that stalled in planning, regulatory review, or financing uncertainty, today’s announcement represents synchronized execution across:

• Construction management

• Contractors

• Pipe supply

• Gas supply

• In-state customers

• LNG shipping

• International buyers

• Equipment suppliers

This alignment is what enables project financing, scheduling, and physical construction to proceed.

For the first time, Alaska LNG is no longer just a proposal, it is a coordinated infrastructure build with timelines, contractors, supply chains, and customers moving in parallel.

Phase One construction is now structurally positioned to begin with first gas targeted for 2029.

This marks the most significant execution milestone in the Alaska LNG project’s history.

Glenfarne partners with Danaos to advance Alaska LNG shipping, commits $50 million to project