In 2009, in response to declining Cook Inlet gas supplies and crippling interior energy costs, the Alaska Legislature initiated a publically financed effort to explore the feasibility of developing an in-state only, North Slope natural gas pipeline. In 2010, following the passage of HB 369 (Chapter 7, SLA 2010), the initiative transferred to the Alaska Gasline Development Corporation (AGDC), a newly formed subsidiary of the Alaska Housing Finance Corporation. That initial work culminated in the Alaska Stand Alone Pipeline (ASAP) project plan, which was originally delivered to the Legislature in July 2011, and then refined and re-proposed in January 2013. In May 2013, with the enactment of HB 4 (Chapter 11, SLA 2013) and an accompanying appropriation of $355 million, AGDC received the power, authority and multi-year funding necessary to advance the ASAP project through open season and sanctioning. That legislation also established AGDC as an independent, public corporation of the State of Alaska. AGDC has a legal existence separate and distinct from the State and is located within the Department of Commerce, Community, and Economic Development, for administrative purposes only.

In 2014, with the passage of SB 138 (Chapter 14, SLA 2014), the Corporationís mission and authority were further expanded to include having primary responsibility for developing an Alaska liquefied natural gas (LNG) project on the Stateís behalf. The legislation also directs the Corporation to assist the Department of Revenue and the Department of Natural Resources in maximizing the value of the stateís gas. The Corporation received a $69.8 million appropriation to fund the stateís initial equity participation in the Alaska LNG project.