U.S. Senator Dan Sullivan speaks on Alaska LNG project progress in this excerpt from a press release, Jan 13:
Ashlyn O’Hara, KDLL Kenai Public Radio: Pivoting slightly, but sticking with resource development: The last that I’d heard from your office regarding the Alaska LNG Project was earlier in the summer. You’d mentioned that you were kind of shopping it around the Pentagon to see if there was any interest in federal capital investment. What were the results of those conversations? Did anything come of those talks?
U.S. Senator Dan Sullivan: I would say, in terms of the Alaska LNG Project, since we talked last summer, we’ve seen really significant progress. Now, I fully understand when people are going to roll their eyes and say, ‘Oh, come on, Dan. We’ve been hearing that for 50 years.’ I get the skepticism, but when you see the progress that Glenfarne has gotten in terms of letters of intent, but also what are called heads of agreement—that’s the next step in terms of a commitment to buy gas. When you look at the partnership agreements that they’ve signed with a number of different off-takers from Japan, from Korea, from Thailand, from Taiwan; and when you look at how much the President and his team have been pushing this project—you couldn’t have a starker contrast between the Biden administration that was all about shutting down resource development, particularly oil and gas in Alaska, John Kerry, the climate czar, literally going overseas to Japan and Korea, telling them not to buy Alaska LNG, to having the President and his team encouraging countries to do that. I’ve been doing that as well, with the Koreans, with the Japanese, particularly with the Taiwanese. I think we’re seeing some really important progress. Glenfarne is almost done—I’m meeting with the leadership of that company tomorrow—with their FEED (front-end engineering and design) work on the project.
But in terms of the federal government, we were able to get in the budget reconciliation bill a brand new Energy Dominance Financing Program at the Department of Energy. This is a big financing program that’s all about American government investment and loans in large-scale transformative energy infrastructure projects. Well, guess who’s number one on their list that they are negotiating with as we speak? That’s the Department of Energy negotiating with this new authority and new fund that we got into law with the Glenfarne Alaska LNG Project. DOE is definitely working it, Ashlyn. It’s a very good question. Lately, we have been pressing this idea, not only of DOD having off-take agreements to essentially help heat the bases. By the way, as Alaskans know, in Interior Alaska, it has gotten really cold. Eielson and Ft. Greeley are approaching 50 below zero temperatures. They need steady supplies of gas. But we are looking at this big move now to start having federal data centers located on military bases throughout the country. My team and I have been starting to work with DoD on that concept, too. That’s a great idea that the administration is pursuing: data centers for our military on military bases. Well, guess where would be a great place to do that? It would be in Alaska.
That discussion you and I had on the DOD side is still ongoing, but I will tell you, where we’ve made the most progress with the federal government in terms of financing our project is in the aftermath of the budget reconciliation bill and the provision that I personally negotiated to get this energy financing program up and running with the Department of Energy. This builds on the provision Sen. Murkowski and I got in the bipartisan infrastructure bill, which was for loan guarantees for this project. This project has federal loan guarantees that were indexed to inflation, fortunately. It’s the only project in America that’s backed by the full faith and credit of the United States government.
So, a lot of progress right now, I think it’s an exciting time, certainly for the Kenai because the LNG facility will be built there. But, as I always mentioned to the naysayers—and I get why people are naysayers—but the reason, Ashlyn, I’ve been putting my shoulder into this for years and years and years is, I always say to the people who are kind of like, ‘Oh, what a waste of time. It’s not going to happen.’ Well, what’s the alternative? What’s the alternative? Unfortunately, we’re starting to run out of Cook Inlet gas. The alternative, longer term, when you ask people, it’s, ‘Well, we’ll probably have to import gas from Mexico or Canada.’ Count me out on that one. I think we need to solve Alaska’s energy problem with Alaskan energy. Here’s the final thing. If we have long supplies for 50 to 100 years of clean burning, low-cost Alaska gas running through our state, run into the Kenai Peninsula, there’s nothing we can’t do. Our future is going to be so bright. The jobs just to build this thing are in the 15 to 20,000 worker range. But to me, it’s an exciting time, and since you and I’ve talked, the progress has been accelerated. I talked to the President of the United States about this two weeks ago in the Oval Office. His team is still really focused on it. That is another reason that we’ve seen all this progress. I’m hopeful we’ll have a final investment decision sometime in 2026, and I’m meeting with the Glenfarne guys tomorrow and the Secretary of Energy tomorrow, and trust me, I’m going to continue to press this really important project.
You are a awesome Senator. One out of two that works for Alaska. Thank you for your hard work. Please keep supporting Ukraine.
Keep supporting Ukraine?!?!? Senator Sullivan hasn’t mentioned Ukraine since January 20, 2025. It was however was one of his favorite things to talk to the press about up to January 19, 2025, when he would castigate former President Biden for failing to do enough to support Ukraine. V6, you must have meant “Please start supporting Ukraine again!”
Helping Ukraine is what made us energy dominant…unfortunately Trump has squandered our energy dominance by exporting LNG to benefit China.
Bla bla bla bla bla.
Senator Strangelove does not understand basic science, or economics. Iowa has hundreds of wind farms and the lowest electric rates in the USA. Switzerland has zero carbon and exports energy from hydro and solar. An updated cost estimate will speed up conversion of the Nikiski facility to import gas. Nobody has committed any real $$$ in Contracts because an 800 mile pipeline can not compete with tideland gas fields around the world. This is all a show to appease President Bonespurs
Not economically feasible, however maybe the 15 to 20,000 jobs could be “make work” jobs like the Civilian Conservation Corps projects…..
Marlin its absolutely financially feasible. In fact old Frankie boy must know what the future holds for gas prices. He must also know that we will have access to this shipped in gas. Apparently he also thinks the only use for gas is energy. He is quite the tool. He is a left wing screw ball.
Please explain in detail how a pipeline can deliver gas profitably to Cook Inlet tidewater.
What a waste of money and time. Thanks to my Great Grandfather, I have interests in Marcellus and Utica formation wells. Beneath those, lies the Trenton Black River formation that stretches from Quebec to Ohio and Kentucky which supposedly holds more oil and gas than Prudhoe Bay. Natural gas is not only plentiful worldwide, but new wells are being drilled worldwide daily.
I recently received a check for $3.19 MCF. Many years ago, $17.00 MCF at tidewater was mentioned for the Alaska Gas Line to break even. What would it be today; $70 MCF?
LNG by ships or Electric Generation facilities at Prudhoe Bay would be economically reasonable. A gas line would be folly.
Bingo…fracking is what made Palin’s pipeline uneconomical.
Still waiting for Your detailed explanation as to how North Slope gas can be delivered profitably to Cook Inlet Tidewater. Keep in mind that price will be at least 20 times the going world rate.
Glenfarne touted throughout 2025 that they would reach a final investment decision (FID) by the end of the year. Then it came out that they wouldn’t share the project cost estimate (from the front-end engineering and design [FEED]) with the public. Then, in late 2025 they said the project could not go through without the State reducing their property taxes (about 80-90%), which are of course taxes paid to the local municipalities and boroughs. Now, Senator Sullivan is saying he hopes Glenfarne gets to FID in 2026–after all of his efforts, he should be pounding on their doors for that positive decision! Finally, about a dozen LNG export facilities have come on line in North America in the last couple of years and more are in construction or planning–who is going to buy all of this LNG? These letters of interest mean absolutely nothing when these customers are signing contracts with Canada and Gulf producers.
“Federal financing”? Nope, I’m strongly opposed to that. And, of course, the major producers have not committed.
Let’s get it built Dan time is wasting. Good job keep your shoulder into it.
Glenfarne?
Been in the oil & gas business for 35+ years.
Never heard of them.
Yet they are going to finance and execute one of the biggest projects in the history of Western civilization?
Sure.
And I’ve get to hear “one peep” from Conoco, Hilcorp, or the rest of them on the Slope – not one peep.
Why???
I sincerely hope I’m wrong.
You are 100% correct and financially, I’m glad You are right as there has already been too much government waste, federal, state and local.
never gonna happen, hopeless way of time and money, money out the window that could have been used to build a railroad across Alaska.
Administrative Order 360 from the Alaskan Governor and Alaska’s new AG, Mr Cox, both seem to want to cut the red tape and the current abusive regulatory policies that have caused decades of decline in oil and gas production and left Alaska with two operatrors manageing 99% of all state production, as many oil and gas companies left Alaska and are bidding big in the Gulf of America, see the last sale BP bid $100 Million for exploration leases and was the biggest of the seven former Alaska oil and gas companies that left Alaska. Bill Armstrong indicated in the Northern Journal that he wants Alaska oil and gas agencies to stop acting like Venezuela and be fair and reasonable. Hopefully, all the oil and gas bureaucrats and their leadership will follow the Governor’s mandate to make Alaska the most competitive on the planet, as stated at the recent RDC event. The Governor praised Bill Armstrong as being the greatest Wildcatter, as he caused a turnaround in Alaska. Thank God for the Governor, the AG, and Sen. Dan Sullivan, who never seem to stop working with President Trump to make Alaska’s oil and gas Industry Great Again. Drill Baby Drill and DOGE those who stop the oil and gas investors in Alaska.
At least we have RINO Yundt wanting to raise taxes on Hilcorp.
That’ll spur oil & gas investment, right???…
What’s the alternative to the prohibitively expensive Alaska LNG project, Senator? How about arranging for some Department of Defense financing for a small diameter natural gas pipeline from the North Slope to provide the railbelt ( and our military bases ) with abundant and cheap gas? With the arctic’s strategic importance in a rapidly changing multipolar landscape it should be a relatively easy sell to scrape off a measly 50 billion bucks from the gargantuan one trillion-dollar DOD budget, or if that’s not possible, suspend aid to the Middle East & Ukraine for a year. That should be more than enough shekels!
Everyone please read about the 1973 Trans Alaska Pipeline Act. Without a similar piece of legislation this project is unlikely to go anywhere. Except to Court where it would lose BIGLY.
How about we read a book called ‘The Energy Non-Crisis’ by Lindsey Williams? All of us.
I’ll be very surprised if the LNG pipeline gets built.
Dan is all propaganda and no results. Ask him what he thinks about America arresting and murdering its own citizens and he will prove Pebble Mine Tom Colier’s claim that “Sullivan is staying quiet in his corner”. Sullivan is weak when we need strength and full of bluster. Peltola is a far better candidate.
She k but Bevan OKC candidate, but she’s an awful legislator/ employee. She doesn’t show up, and doesn’t do much the few times she is present has very bad judgement, or a serious lack of perception
If that gas line doesn’t get built we better get on building some big time coal fired plants. The greenies already killed the Susitna hydro project which would be on line about now. Frankie rast wants 5000 windmills and 1 million acres of solar panels. That will make the horizon look nice.
Fishing interest killed Su-Watana. And there is an outfit trying to construct a coal-fired powerplant in the Susitna Valley.
Doug. In one of my philosophy classes I teach persuasive writing. Exaggerating, as you have done, typically weakens an argument.
Good work senator !!
Better spent money here then in the laundromat called Ukraine.