Alaska Gas Pipeline, LNG Projects Gain Momentum Amid Global Supply Shifts

Alaska’s proposed gas pipeline and LNG projects are gaining traction as global supply disruptions drive demand for new export routes, according to IER research.

(P&GJ) — Plans to develop Alaska’s vast natural gas resources are gaining renewed attention as global supply disruptions reshape LNG markets, according to research from the Institute for Energy Research.

A long-planned project backed by the Alaska Gasline Development Corp. would transport natural gas from the North Slope through an approximately 810-mile pipeline to a southern coastal export terminal. The project, estimated at about $44 billion, is designed to support LNG exports to Asian markets while also supplying in-state demand for heating, power and industrial use. A final investment decision could be reached in the near term, according to Institute for Energy Research.

Separately, a competing concept from Polar LNG would liquefy gas closer to the source using a nearshore facility on Alaska’s North Slope. That project would rely on shorter pipeline connections and specialized ice-class tankers to export LNG year-round, with initial production targeted around 2029–2030 and costs estimated between $8 billion and $9 billion.

Alaska holds an estimated 35 trillion cubic feet of proven natural gas reserves, much of it associated with oil production, but moving those volumes to market has long been constrained by infrastructure challenges. Both the pipeline and Polar LNG concepts aim to unlock those resources for export, particularly to Asian buyers seeking alternatives to Middle Eastern supply.

However, the projects face logistical and regulatory hurdles. Arctic shipping conditions present risks for LNG transport, while tax policy disputes between the state and local governments remain a key issue for the pipeline route, according to Institute for Energy Research.