NovaGold Resources Inc. announced a non‑binding Letter of Intent with Glenfarne Alaska LNG, the majority owner of the Alaska LNG Project, to supply up to 50 million cubic feet of natural gas per day to its Donlin Gold mine and to collaborate on building a 315‑mile pipeline and a power plant that will deliver the gas to the site.
The agreement tackles a key cost driver for the Donlin project. Energy expenses are a large portion of the mine’s operating budget, and a reliable, low‑cost gas supply could reduce those costs and accelerate the bankable feasibility study timeline. Securing this supply is a critical step toward de‑risking the project and attracting the $7‑$8 billion of development financing needed to bring the mine to production.
The Donlin deposit is among the world’s largest undeveloped gold resources, and the partnership aligns with NovaGold’s strategy of leveraging Alaska’s secure jurisdiction and native corporation relationships to secure a stable supply chain. By tying the mine’s energy needs to Glenfarne’s expanding LNG infrastructure, NovaGold positions the project to benefit from low‑carbon, low‑cost natural gas, which could improve the mine’s economics and appeal to investors.
Glenfarne’s experience in LNG development and the existing pipeline infrastructure are expected to reduce the project’s energy costs. The pipeline for the Donlin mine is planned to be 315 miles long, distinct from the 765‑mile Phase I pipeline that will serve domestic markets. The power plant will be co‑located with the pipeline to streamline delivery and reduce transmission losses.
Greg Lang, NovaGold’s President and CEO, said the partnership would “offer significant benefits not only for the mine, but for the entire Southwestern Alaska region.” John Paulson, a major investor in Donlin Gold, added that a reliable gas supply “has the potential to substantially enhance our ability to unlock the project’s value.” Adam Prestidge, Glenfarne’s President, highlighted that the low‑cost gas will “enhance the economics and facilitate development of energy‑intensive mining projects in Alaska.”
While the agreement is still non‑binding and final terms are pending, the announcement marks a major milestone that could materially improve the Donlin project’s economics and financing prospects. The partnership demonstrates progress toward a key infrastructure component that is essential for the mine’s long‑term viability.
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