Glenfarne and Donlin Gold sign letter of intent for Alaska gas and infrastructure
Published by Jessica Casey,
Editor
LNG Industry,
Glenfarne Alaska LNG, LLC, majority owner and developer of the Alaska LNG Project, and Donlin Gold LLC, the developer of the Donlin Gold mine owned by NOVAGOLD RESOURCES INC. and Paulson Advisers LLC, have announced that the companies have signed a non-binding letter of intent (LOI) for natural gas supply from the Alaska LNG Pipeline and the development of the infrastructure needed to deliver the gas and power the mine.
Under the LOI, the companies will work to formalise a potential natural gas sales agreement for up to 50 million ft3/d of natural gas and also to co-operate on the most effective method for development and construction of an approximately 315-mile-long natural gas pipeline from Southcentral Alaska to the Donlin Gold mine in Southwest Alaska and a power plant to supply electricity to the mine.
Glenfarne Alaska LNG President, Adam Prestidge, said: “Alaska LNG offers abundant low-cost natural gas that will enhance the economics and facilitate development of energy-intensive mining projects in Alaska. We have great confidence in the future success of Donlin following the significant investment by Paulson. Adding a foundational customer like Donlin Gold, one of the largest known undeveloped gold deposits in the world, to Alaska LNG provides significant volume discount benefits that will result in lower energy costs for Alaska consumers. As we continue to bring on more pipeline customers, the cost of gas for Alaskans will continue to go down.”
John Paulson, President of Paulson, added: “A reliable, secure supply of economic natural gas from Alaska LNG has the potential to substantially enhance our ability to unlock value and upside potential in Donlin Gold. Glenfarne’s global energy experience is well suited to provide a long-term turnkey energy solution that helps advance this opportunity.”
Greg Lang, NOVAGOLD’s President and CEO, concluded: “As Donlin moves into what we hope to be the largest single gold mine in the US, natural gas from Alaska LNG could offer significant benefits not only for the mine, but for the entire Southwestern Alaska region. We look forward to working with Glenfarne to unlock the value of both of these world-class Alaskan resources: Donlin Gold and Alaska LNG.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/09012026/glenfarne-and-donlin-gold-sign-letter-of-intent-for-alaska-gas-and-infrastructure/
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