Alaska LNG Secures First Offtake Deal as Glenfarne, POSCO Sign Partnership
(P&GJ) — Glenfarne Alaska LNG, LLC and POSCO International Corporation have signed an agreement to advance a strategic partnership for the Alaska LNG Project, the only federally authorized LNG export project on the U.S. Pacific Coast.
The partnership includes steel supply for the project’s 807-mile pipeline, a 20-year offtake agreement, and potential investment, according to the companies. The agreement sets the framework for definitive deals, subject to board approvals.
Under the terms, POSCO would supply a significant portion of the steel required for Alaska LNG’s 42-inch-diameter natural gas pipeline. The line will connect the North Slope’s stranded natural gas resources to Alaska’s population centers and the planned export terminal in Nikiski. Glenfarne is targeting a final investment decision (FID) on the pipeline by year-end.
The deal also includes initial terms for a 20-year Heads of Agreement covering 1 million tonnes per annum (MTPA) of LNG offtake on a Free-on-Board basis — marking the first announced HOA for the project.
Alaska LNG is a joint venture between Glenfarne, the majority owner and lead developer, and the state-owned Alaska Gasline Development Corporation. POSCO, Korea’s largest steel producer and a major LNG importer, will serve as both supplier and buyer in the partnership.
“POSCO’s participation in Alaska LNG adds tremendous momentum as we drive this signature North American LNG project forward at a rapid tempo,” said Brendan Duval, CEO of Glenfarne. “This agreement includes critical project components and demonstrates global support for unlocking some of the most strategically located LNG in the world.”
Adam Prestidge, president of Glenfarne Alaska LNG, added: “POSCO is one of the world’s foremost steel companies, a leading LNG importer in one of Alaska LNG’s most important markets, and now a significant partner in Alaska LNG. POSCO’s involvement underscores the project’s strategic, geographic, and economic competitive advantages.”
The Alaska LNG project includes a pipeline designed to feed the 20 MTPA liquefaction facility in Nikiski, with construction planned in two phases. Phase One would move gas 765 miles from the North Slope to the Anchorage area, while Phase Two covers the LNG terminal, a 42-mile Cook Inlet crossing, and compression facilities. Glenfarne is working with Worley on final engineering for the pipeline.
This announcement follows Alaska LNG’s letter of intent signed with JERA Co., Inc. earlier this week.
Glenfarne’s North American LNG portfolio totals 32.8 MTPA under development across Alaska, Texas, and Louisiana.