Gold project developer NOVAGOLD has taken a step toward securing long-term energy supply for its proposed Donlin Gold mine in Alaska, with its Donlin Gold joint venture signing a non-binding letter of intent with Glenfarne Alaska LNG for natural gas supply and related infrastructure development.

Donlin Gold, which is 60%-owned by NOVAGOLD and 40%-owned by Paulson Advisers, signed the letter of intent (LoI) with Glenfarne Alaska LNG, the majority owner and developer of the Alaska LNG project. The arrangement centres on the potential supply of up to 50-million cubic feet a day of natural gas from the Alaska LNG pipeline and the construction of infrastructure to deliver gas and generate power for the proposed mine in south-west Alaska.

Under the LoI, the parties will evaluate a formal gas sales agreement and cooperate on the most effective approach to develop and construct a natural gas pipeline linking Southcentral Alaska with the Donlin Gold project. The pipeline would feed a dedicated power plant supplying electricity to the mine.

Paulson president John Paulson said the potential access to Alaska LNG gas could materially strengthen the project’s outlook. “A reliable, secure supply of economic natural gas from Alaska LNG has the potential to substantially enhance our ability to unlock value and upside potential in Donlin Gold,” he said.

NOVAGOLD president and CEO Greg Lang said aligning the Donlin Gold and Alaska LNG infrastructure could deliver both operational and cost benefits. “Powering Donlin Gold with natural gas from Alaska LNG could offer major advantages for the proposed mine and the Southwestern Alaska region by harnessing the strategic potential of such an important gold endowment for the industry and the United States,” Lang said.

He added that synchronising pipeline schedules could reduce fuel costs and streamline logistics. “Aligning Alaska LNG and Donlin Gold’s pipeline schedules could reduce fuel costs, optimise transportation and logistics, streamline material procurement, and leverage shared expertise to lower overall project expenses,” Lang said.

According to NOVAGOLD, the Donlin Gold development concept includes a buried 508.5-km natural gas pipeline from an existing pipeline near Beluga, Alaska, to the mine site. Key federal and state permits for the pipeline route have already been issued, with the Alaska Supreme Court recently upholding the issuance of the pipeline right-of-way lease by the state’s Department of Natural Resources. A court-directed supplemental environmental-impact statement is under way as part of the FAST-41 federal permitting programme.

At the same time, Donlin Gold continues to advance work toward a bankable feasibility study. Proposals have been received from several leading engineering firms, with a prime contractor expected to be selected in the first quarter of 2026. Requests for proposals have also been issued for specialist contractors covering the power plant, pipeline and processing facilities, with final construction approvals subject to completion of environmental review, permitting and the feasibility study.