May 2025, Vol. 252, No. 5
Projects
Projects May 2025
Glenfarne Takes Lead on Alaska LNG Pipeline Project
Glenfarne Alaska LNG, a subsidiary of Glenfarne Group, signed definitive agreements with the Alaska Gasline Development Corporation (AGDC) to become the majority owner and lead developer of the Alaska LNG project.
The move marks a major step forward for the long-planned pipeline and export terminal, with a final investment decision expected in 2025.
Under the agreement, Glenfarne will acquire a 75% stake in 8 Star Alaska, an AGDC subsidiary that holds all Alaska LNG assets. AGDC will retain a 25% share and remain an active partner.
Alaska LNG is the only federally permitted LNG export project on the U.S. Pacific Coast. The project includes three components: an 807-mile, 42-inch pipeline, a 20 mtpa LNG export terminal in Nikiski and a carbon capture facility on the North Slope, capable of storing 7 mtpa of CO2.
With Cook Inlet gas production in decline, phase one of the project will prioritize pipeline development to deliver North Slope natural gas to Alaska residents and utilities.
The State of Alaska will retain a 25% stake in 8 Star Alaska following a successful investment decision and will have the option to invest up to 25% in any of the sub-projects.
Fluxys Building Belgium’s First Hydrogen Pipeline Network
Fluxys began construction on the first phase of Belgium’s hydrogen pipeline network, marking a key milestone in the country’s push toward a low-carbon economy.
The project, led by Fluxys hydrogen NV, involves building open-access hydrogen pipelines in the industrial port zones of Antwerp and Ghent, including the corridor from Kallo to Zelzate. The infrastructure will use multi-purpose pipeline technology similar to that of recent natural gas lines, and is expected to be operational by 2026.
“This infrastructure is essential for decarbonizing the industry,” said Pascal De Buck, CEO of Fluxys hydrogen and CEO and managing director of Fluxys Belgium. “With this step, Fluxys as an industrial group takes on its role in the energy transition.”
Fluxys hydrogen, a subsidiary launched in 2023, was officially appointed in April 2024 as Belgium’s Hydrogen Network Operator, responsible for planning and managing the country’s open-access hydrogen network.
The construction decision follows extensive consultations with government bodies, regulators, and industrial stakeholders, and is supported by the European Union’s Resilience and Recovery Fund.
The network aims to enable connections for both hydrogen producers and consumers and will expand gradually based on market development and government-backed risk mitigation.
Fluxys hydrogen plans to offer up to 30 terawatt-hours of hydrogen transmission capacity annually by 2030.
Czechs to Phase Out Russian Oil as TAL Expansion Goes Live
The Czech Republic is boosting transportation of crude through the expanded TAL pipeline from Italy, Czech pipeline operator MERO said, replacing imports of Russian oil through the suspended Druzhba pipeline.
MERO completed an upgrade of TAL, as 2024 came to a close. The pipeline carries oil from tankers in the Italian port of Trieste to Germany, where it ties in to the IKL pipeline and then on the Czech Republic. The expansion raises capacity available to the Czech Republic.
Flows through Druzhba were to continue until June but have been halted since early March due to what sources said were payment issues related to sanctions on Russia.
“Czechia will for the first time use the TAL-PLUS project,” state-owned MERO said in a statement to the media. “Oil shipments through the western route are increasing and thus will replace the interrupted supplies of Russian crude.”
Czech refiner Orlen Unipetrol had been sourcing around half of its crude needs from Russia and the other half through TAL, according to Reuters. It had been using oil from state reserves to keep up production after the halt in supplies through Druzhba.
TC Energy, Industry Call on Canada to Fast-Track Pipeline
A coalition of Canadian energy leaders, including pipeline giant TC Energy, has issued an open letter to federal political party leaders urging immediate action to support the expansion of Canada’s oil and natural gas industry.
In the letter addressed to Mark Carney, Yves-François Blanchet, Pierre Poilievre, and Jagmeet Singh, the group argued that Canada is at a critical juncture and must urgently advance energy infrastructure projects – including new pipelines and LNG terminals – to strengthen economic sovereignty and global influence.
“There is increasing public support to urgently grow our energy sector,” the letter said. “Canadians increasingly see the importance of using our abundant energy to ensure Canada can defend its sovereignty, play a role in the world as a force for good, and improve our overall economic competitiveness and prosperity.”
Citing forecasts that oil and natural gas will remain among the world’s dominant energy sources for decades, the energy leaders assert that Canada has a moral and economic obligation to provide democratically produced, low-emission energy to global markets, especially those faced with energy poverty.
“More than 4 billion people live below modern standards of living, and 8.3 million die annually due to inadequate access to clean heating and indoor air pollution,” the letter stated. “Canada has the resources to responsibly meet this demand as one of the top five global oil producers.”
The group also pointed to the environmental potential of Canadian LNG exports to displace coal-fired power in Asia and ongoing investments in carbon capture technology in the oil sands.
Phillips 66 to Build 300 MMcf/d Gas Processing Plant in Permian
Phillips 66 plans to expand its midstream operations with the construction of a new gas processing facility in the Permian Basin, the company announced on April 25 alongside its first-quarter 2025 financial results.
The Iron Mesa gas plant, a 300 MMcf/d facility, will provide natural gas processing services for Delaware and Midland Basin production. Phillips 66 expects the plant to begin operations in the first quarter of 2027, further advancing its wellhead-to-market strategy amid ongoing growth in Permian output.
“The acquisition of EPIC NGL earlier this month and the announcement that we are constructing a new gas plant in the Permian furthers our integrated NGL wellhead-to-market strategy,” Chairman and CEO Mark Lashier said. “This provides stable cash flow in uncertain market environments, enabling us to consistently return over 50% of net operating cash flow to shareholders.”
The announcement comes as Phillips 66 reported a first-quarter adjusted loss of $368 million, or $0.90 per share, citing a challenging macro environment and extensive planned maintenance. Including special items, the company posted net earnings of $487 million, or $1.18 per share.
“Our results reflect not only a challenging macro environment, but also the impact from one of our largest-ever spring turnaround programs, managed safely, on-time and under budget,” Lashier said. “With the bulk of our turnarounds behind us, we are well positioned to capture stronger margins as the year unfolds.”
Beyond the Iron Mesa project, Phillips 66 also recently closed its acquisition of EPIC Y-Grade GP, LLC and EPIC Y-Grade LP, strengthening its integrated natural gas liquids (NGL) position.
Phillips 66 returned $716 million to shareholders through dividends and share repurchases during the quarter and reported $1.5 billion in cash and cash equivalents as of March 31. Total debt fell by $1.3 billion to $18.8 billion. The company also completed a crude flexibility project at its Sweeny Refinery during the first-quarter maintenance window.
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