Baker Hughes Joins Alaska LNG Project, Boosting North Slope Outlook
Baker Hughes will supply key equipment for the proposed Alaska LNG project, which aims to build an 800 mile pipeline and a liquefaction terminal to export North Slope natural gas. The $44 billion initiative could reshape local economic prospects through construction activity and future royalties, while facing high costs and rugged terrain that will be closely watched by residents and leaders.
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Baker Hughes, a major oilfield services provider, has committed to supplying refrigerant compressors for the planned LNG terminal and power generation equipment for a gas treatment plant on the North Slope, the project lead developer announced on Monday. The equipment supply is a tangible step forward for a proposed $44 billion project that would construct an 800 mile 1,287 km pipeline to carry natural gas from Alaska's North Slope to the Gulf of Alaska for liquefaction and export to markets including Asia.
The project has gained renewed momentum under the current federal administration, and Glenfarne Group, the lead developer, has increased its stake in Alaska LNG to 75 percent earlier in 2025. A final engineering study is expected later in 2025, with an investment decision targeted for the pipeline in early 2026 and a terminal investment decision by late 2026. Those milestones will determine whether the project moves into large scale construction that could have pronounced effects on the North Slope Borough economy.
"With someone like Baker Hughes coming in it's a stamp of approval," said Brendan Duval, CEO of Glenfarne Group, the project's lead developer. Industry participation of this scale signals confidence from suppliers that the project has commercial traction, but it does not eliminate major challenges. Project officials continue to flag the high cost of construction and the rugged terrain along the proposed route as significant hurdles. Those factors drive both capital expenditures and schedule risk, and will influence the ultimate economic benefits for local communities.
For residents of the North Slope Borough the project presents potential gains and trade offs. If the project advances as planned, the construction phase would generate demand for local contracting, services, materials and logistics, and the longer term operation of the terminal and pipeline could deliver royalties, tax revenues and employment associated with gas production and exports. At the same time the scale of investment means that any delays or cost overruns could postpone or reduce those benefits, and the borough will need to plan for infrastructure and environmental oversight during a multi year development process.
Market context matters for local outcomes. Global demand for liquefied natural gas underpins the business case for large export projects, and the decision by a prominent supplier to commit equipment suggests private sector belief in sustained demand. Yet the broader energy transition and price volatility in commodity markets remain background risks that could affect project economics over the long term.
As Glenfarne and partners move toward the engineering study and the investment decision windows in 2026, North Slope officials and residents will be watching for more detailed timelines, local hiring commitments, and environmental assessments that will translate headline investment figures into concrete local impacts.