POSCO to Supply Steel, Buy LNG Under Glenfarne’s Alaska LNG Agreement
Glenfarne and POSCO have finalized a strategic partnership for the Alaska LNG project, including a 20-year offtake deal, steel supply for the 807-mile pipeline, and a pre-FID investment to advance the only federally authorized LNG export terminal on the U.S. Pacific Coast.
(P&GJ) — Glenfarne Alaska LNG, LLC and South Korea’s POSCO International Corporation have finalized a strategic partnership for the development of the Alaska LNG Project—the only federally authorized LNG export project on the U.S. Pacific Coast.
The agreement includes a 20-year Heads of Agreement (HOA) for 1 million tonnes per annum (MMtpy) of LNG offtake on a Free-on-Board basis, marking the project’s first long-term LNG sales commitment. POSCO will also supply a significant portion of the steel required for the project’s 807-mile, 42-inch natural gas pipeline and make a pre-FID capital investment in the venture.
The signing was commemorated at the U.S. Department of Energy in Washington, D.C., with Glenfarne CEO and Founder Brendan Duval and POSCO International CEO KyeIn Lee, joined by Secretary of the Interior and National Energy Dominance Council Chairman Doug Burgum and Secretary of Energy and Vice Chairman Chris Wright.
“POSCO Group is one of the world’s leading steel and energy companies, and their commitment to Alaska LNG reflects the high degree of support in Asia and across the Pacific for unlocking this valuable source of abundant, competitive LNG,” Duval said.
POSCO International, a major Korean LNG importer and part of Korea’s largest steel group, will play a key role in advancing the project alongside Alaska Gasline Development Corp., the state-owned co-developer.
Glenfarne recently announced a separate partnership with Baker Hughes, which will invest in Alaska LNG and provide LNG compression and power-generation technology.
Since becoming majority owner in March, Glenfarne has secured preliminary commercial commitments totaling 11 MMtpy from buyers in Japan, Korea, Taiwan, and Thailand—including Tokyo Gas, JERA, CPC, PTT, and POSCO.
The Alaska LNG project will be developed in two phases: an in-state pipeline to deliver North Slope gas for local demand, followed by construction of an export terminal designed to ship up to 20 MMtpy of LNG.