The company spearheading the proposed Alaska gasline project estimates it needs around 7,000 workers at peak construction of the 800-mile pipeline. Glenfarne Group, the project’s majority owner, hasn’t committed to developing the project yet. But ahead of that decision, officials outlined anticipated workforce needs earlier this month.
Developers were presenting to the Alaska Workforce Investment Board. That’s the state group that reviews plans and provides recommendations to the state to prepare Alaskans for the workforce. Multiple board members say 7,000 workers is a tall order.
If it’s built, the Alaska LNG Project would treat natural gas on the North Slope, move it through a roughly 800-mile pipeline to Southcentral and then liquefy and export it from Nikiski. Glenfarne is prioritizing the construction phase that’s specifically to build a pipeline for in-state natural gas use.
Rex Canon is the president of 8 Star Alaska LLC. That’s the entity managing the project under Glenfarne and the state gasline development corporation. He says the company envisions multiple work camps along the project footprint as the pipeline is being constructed.
“It's divided into four different construction spreads, which would mean essentially four different sets of equipment and four different large crews,” he said. “And by dividing it up that way, that's how we can move– we essentially build each spread on a simultaneous basis to expedite the schedule.”
Canon says Glenfarne is also doing what it can to prioritize in-state workers. He says they’ve got an internal directory of more than 200 Alaska businesses that could provide goods or services on the project. The company has met with relevant labor unions to talk about work contracts.
Workforce demand was also the subject of the inaugural Alaska Gasline Caucus meeting last month.
And when it comes to workers, the needs are in industries you might expect: 1,900 engineers, 1,600 pipefitters and welders, 450 ironworkers, 400 electricians and 3,500 logistics professionals.
“There will be a project labor agreement on the pipeline, and that would be an agreement with the four main crafts that are relevant for building pipelines,” he said. “So it would be the pipe fitters and the welders, the laborers, the operators and the Teamsters.”
The members of the state workforce board were generally supportive of what the project could mean for Alaska. But several said the state is already strapped for workers. State economists say the pool of working-age adults is shrinking, with seniors and teenagers making up a greater share.
“I think everybody sees a lot of opportunity, and I think a lot of people are excited about a project of this magnitude,” said board member Patrick Rose. “There's a lot of shortfalls we already have in workforce in Alaska that's been a big challenge.”
Glenfarne still hasn’t actually decided to develop the project yet. Canon says the company plans to make that go or no-go decision by Jan. 1.
Since Glenfarne assumed majority ownership of the project from the state earlier this year, the project has picked up a handful of non-binding pledges to buy gas from the project if it’s built. Most recently, the company announced a “strategic alliance” with energy technology company Baker Hughes. Glenfarne wants the company to supply compressors and power generation for project infrastructure on the North Slope.
