Editor's note: This story was updated to include additional information. 

Glenfarne Group has signed a deal to develop a state-sponsored LNG facility in Alaska, the company announced Jan. 9.

Alaska plans to develop an LNG facility in a project that would bring a needed natural gas supply to the Cook Inlet, one of the state’s population centers in the south central area of the state.

A Glenfarne spokesperson said the agreement with Alaska Gasline Development Corp. for the development of the Alaska LNG project included an export facility, pipeline and carbon capture facility in an email to Hart Energy on Jan. 9.

The project is expected to cost an estimated $44 billion, a spokesperson told Reuters. 

Glenfarne has also entered into an agreement with ENSTAR Natural Gas Co., the state’s natural gas utility, to develop an LNG import facility at the export site.

The state came up with the LNG project as the most economically feasible way to build a 765-mile pipeline from Alaska’s North Slope to the Cook Inlet. A local supply of natural gas has served the southern coastal region since the 1960s, but the field is expected to be depleted by 2035.

Under the current plan, natural gas supplied by Pantheon Resources (PTHRF) will be shipped via the future pipeline to the region for utility purposes, with leftover gas going towards LNG production.

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