Alaska LNG Project Signs Labor Deal for 12,000 Construction Jobs
A major workforce agreement has been reached for the Alaska LNG project, offering new insight into how one of North America's largest proposed natural gas developments plans to move forward.
(P&GJ) — Glenfarne's Alaska LNG project has signed a memorandum of understanding with several Alaska labor organizations aimed at prioritizing Alaska workers for construction and related activities on the proposed natural gas export project.
The agreement was signed by Glenfarne subsidiary 8 Star Alaska and three statewide building trades organizations representing 18 unions affiliated with the Alaska AFL-CIO. The framework is intended to support future project labor agreements covering major phases of construction and related operations.
The Alaska LNG project includes an 807-mile, 42-inch natural gas pipeline from Alaska's North Slope and a planned 20-MMtpy LNG export facility. Glenfarne owns a 75% interest in the project, while the Alaska Gasline Development Corp. holds the remaining 25%.
Project developers estimate Alaska LNG could create approximately 12,000 construction jobs and up to 1,000 long-term operations positions if completed.
The memorandum outlines cooperation on workforce availability, labor stability and construction planning as the project moves through development. Future project labor agreements are expected to cover camp construction and operations, logistics, compressor stations, gas treatment facilities, LNG export infrastructure and related site work.
Pipeline installation activities, including right-of-way construction, pipe hauling, access roads, pipe yards and mainline construction, are expected to be addressed through a separate labor agreement currently under development with pipeline construction trades.
Bronson Frye, president of the Building and Construction Trades Council of Southcentral Alaska, said union labor is prepared to meet the project's workforce demands.
"Alaska unions are equipped to handle the workforce challenges associated with a project of this scale, including work across more than 800 miles and in some of the most demanding environments in the country," Frye said.
Lake Williams, president of the Fairbanks Building and Construction Trades Council, said project labor agreements can help provide workforce stability and predictable labor costs during construction.
Rex Canon, co-president of 8 Star Alaska, said the company intends to prioritize qualified Alaska workers as development progresses.
"We are committed to using a skilled Alaska workforce as the primary source of construction labor and ensuring Alaska workers have access to the opportunities the project creates," Canon said.
Alaska LNG is being developed in two phases. The first phase includes construction of the pipeline system to supply natural gas within Alaska, while the second phase would add LNG export facilities designed to ship up to 20 MMtpy to international markets.