Alaska LNG shipping savings justifies billions in investment, developer says

Alaska LNG developer Glenfarne claims that the project's access to stranded natural gas and shorter shipping routes to Asia will make it competitive with US Gulf Coast rivals, despite concerns from analysts about its high infrastructure costs. When fully operational, the cost of shipping gas to Asia from Alaska's North Slope would be at least 65% cheaper than shipping LNG from the Gulf Coast, according to Glenfarne's communications director Tim Fitzpatrick.

While critics have pointed to the project's estimated cost of $44.5 billion to $54.5 billion, or roughly $2.2 billion to $2.7 billion per million tons per annum (MTPA) of LNG capacity, Glenfarne argues that the comparison is misleading as it includes the expense of pipeline and gas treatment infrastructure needed to bring stranded North Slope gas to market.

The company asserts that the project's competitiveness should be measured by delivered LNG costs rather than upfront spending, and has already identified customers for 13 million tons per year of LNG, requiring 16 million tons annually to support project financing.

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