Written by Springnewsng Media Limited | June 3, 2025

The Trump administration remains confident that the massive Alaska liquefied natural gas (LNG) project will secure global investors, despite its towering price tag of over $40 billion.

Promoted as a national energy security initiative by former President Donald Trump, the project envisions building an 800-mile natural gas pipeline from Alaska’s North Slope to the Cook Inlet. There, the gas would be liquefied and shipped primarily to U.S. allies in Asia, including Japan and South Korea.

Despite decades of planning, the Alaska LNG pipeline has stalled due to high development costs and uncertain economic returns. Trump, however, prioritized the project, urging Asian allies to invest or risk unfavorable trade terms and increased tariffs.

Boosting U.S. Energy Exports and Trade

“If you secure long-term buyers for the gas, financing becomes much easier,” said Energy Secretary Chris Wright in a CNBC interview at Prudhoe Bay. “Countries looking to reduce their trade deficits with the United States have a straightforward option—import more American energy.”

Still, energy analysts question the project’s commercial logic. Alex Munton, Director of Global Gas and LNG at Rapidan Energy, noted, “If Alaska LNG made strong economic sense, it would have seen broader support years ago. This project has been on the drawing board for decades.”

Domestic Benefits and Military Interest

The pipeline is intended to serve Alaska’s domestic energy needs initially, especially as natural gas supplies from the Cook Inlet decline. According to Interior Secretary Doug Burgum, the U.S. Department of Defense is prepared to support the project with an offtake agreement to fuel strategic military bases across Alaska.

“The Pentagon is ready to commit to using this gas to power our vital installations throughout the state,” Burgum said.

He also emphasized the strategic advantage of the proposed export route: LNG could reach Japan in just eight days—three times faster than shipments from the U.S. Gulf Coast, which currently pass through the heavily congested Panama Canal. Additionally, Alaska LNG would avoid the geopolitically sensitive South China Sea, a major shipping route for Middle Eastern LNG.

Project Timeline and Investment Outlook

While interest from Asian investors is growing, Energy Secretary Wright acknowledged lingering concerns over the project’s timeline and complexity. The pipeline could be operational for southern Alaska by 2028 or 2029, with LNG exports to Asia projected to begin in the early 2030s.

The project’s lead developer, Glenfarne Group, announced that a final investment decision (FID) is expected within 6 to 12 months for the pipeline section connecting the North Slope to Anchorage. Glenfarne, a private U.S.-based firm with offices in New York City and Houston, specializes in global energy infrastructure development and operation.