Glenfarne Group is negotiating with two more buyers for the $55 billion Alaska LNG project, seeking offtake agreements for another 3 million tonnes of gas before it can reach a final investment decision. The developer has already locked in commitments for more than 13 million tons toward its 20-million-ton target, aided by Trump administration backing and interest from Japan and South Korea.
Glenfarne closes in on its offtake target
Lead developer Glenfarne Group is talking to two more potential buyers to secure offtake agreements for another 3 million metric tons of liquefied natural gas before making a final investment decision on the project. Glenfarne needs 80% of its 20-million-ton target capacity covered before it commits, and it has already secured agreements for more than 13 million tons so far.
Japan's Tokyo Gas and JERA are among the buyers that have signed preliminary offtake agreements with the company. Glenfarne owns 75% of the venture, with the state-backed Alaska Gasline Development Corporation holding the rest.
Political backing revives a stalled project
The project struggled to attract financing two years ago, as Arctic construction costs, logistical complexity and heavy property tax burdens made lenders and Asian buyers hesitant. But the outlook shifted as the Trump administration pushed Japan and South Korea to invest in the project and buy its gas, part of broader efforts to shrink their trade surpluses with the United States.
Energy Secretary Chris Wright said last year that securing commercial offtakers makes financing straightforward. Glenfarne CEO Brendan Duval, speaking at a business forum in Tokyo, said the "last 3 million tons will move very quickly."
A two-phase build to the Pacific
Phase One will route gas from Prudhoe Bay to the Anchorage region through a 765-mile, 42-inch pipeline built in four simultaneous sections, with an optional 63-mile lateral line pulling gas from secondary North Slope fields. Phase Two will extend the pipeline to its full 807-mile length, ending in Nikiski on the Kenai Peninsula, and add a three-train liquefaction terminal capable of producing 20 million tonnes a year. Greece's Danaos Corporation invested $50 million in January to become the project's preferred tonnage provider, building six to ten LNG carriers to move cargo to Asia.
Entering a crowded export market
Alaska LNG would launch alongside a wave of Gulf Coast projects — Plaquemines, Golden Pass, Corpus Christi Stage 3, Rio Grande, Port Arthur, CP2 and Louisiana LNG — that could add as much as 14 billion cubic feet per day of capacity between 2025 and 2029, roughly doubling current U.S. LNG export capacity. Alaska LNG would give the U.S. something different: a major LNG export hub on the Pacific, much closer to key buyers in Japan and South Korea.
Source: Oilprice.com
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