Glenfarne Alaska LNG and POSCO International Corporation have finalized a major strategic partnership that supporters say positions the Alaska LNG Project for commercial lift-off and global investment momentum.
The two companies signed definitive agreements in Washington, DC on Dec. 1, marking one of the biggest milestones since Glenfarne became majority owner of the project earlier this year. The Alaska LNG Project remains the only federally authorized LNG export project on the US Pacific Coast.
Glenfarne CEO and founder Brendan Duval and POSCO International CEO KyeIn Lee commemorated the agreements during a ceremony at the Department of Energy attended by Interior Secretary and National Energy Dominance Council Chairman Doug Burgum, along with Energy Secretary and Council Vice Chairman Chris Wright.
Under the partnership, POSCO will supply a substantial portion of the steel required for the project’s 807-mile, 42-inch, high-pressure natural gas pipeline stretching from Alaska’s North Slope to tidewater. The agreement also includes a 20-year Heads of Agreement for POSCO to purchase 1 million tonnes per annum of LNG on a Free-on-Board basis — the first HOA signed for the Alaska LNG Project. POSCO will also make a pre-FID capital investment to advance the project toward final investment decision.
Duval said POSCO’s involvement reflects strong interest from Asian markets and across the Pacific for accessing Alaska’s competitively priced LNG and represents a major milestone in the project’s commercial development.
The announcement follows one in November, when Glenfarne inked a major deal with Baker Hughes to supply the main refrigerant compressors for the LNG terminal and power generation equipment for the North Slope gas treatment plant.
POSCO International is the largest trading arm of POSCO Group, Korea’s biggest steel producer and a major LNG importer. Alaska LNG is jointly owned by Glenfarne, which holds the majority stake and serves as lead developer, and the Alaska Gasline Development Corporation, the state-owned entity that has shepherded the project for more than a decade.
Glenfarne recently announced another key partnership with Baker Hughes, which is both investing in the project and supplying LNG compression and power generation technology.
Since acquiring majority ownership in March, Glenfarne has secured preliminary commercial commitments totaling 11 million tonnes per annum from major buyers in Japan, Korea, Taiwan, and Thailand, including Tokyo Gas, JERA, CPC, PTT, and now POSCO.
To streamline development and reduce financial risk, Glenfarne is advancing Alaska LNG in two independent phases.
Phase One focuses on in-state pipeline infrastructure to deliver North Slope natural gas to communities and industry in Alaska.
Phase Two adds the liquefaction plant and export terminal capable of sending 20 MTPA of LNG to global markets.
The company describes the Alaska LNG Project as a cornerstone of its broader North American LNG portfolio, which now totals nearly 33 MTPA under development across Alaska, Louisiana, and Texas. POSCO International, meanwhile, continues to expand its global footprint across steel, energy, agribusiness, and emerging sectors such as renewables and clean mobility components.
With POSCO’s steel, investment, and long-term LNG commitment in place and additional Asian buyers already engaged, Glenfarne appears to be lining up the commercial and industrial backing needed to bring long-awaited North Slope gas to market.
Breaking: Glenfarne inks partnership with Baker Hughes on Alaska LNG project
3 thoughts on “Alaska LNG project lands heavyweights as POSCO signs 20-year deal”
Now Alaska is needing more of the kind of Alaskans like the ones who testified at the Tuesday Dec2nd Assembly meeting to begin their government entry by preciding over their community council
Because Alaska needs more than just government dependents ruling over Alaska while the Arctic is opening up
Government dependents will only put Alaska at the back of the line not at the front as a global leader where we should be because of its geography
A strategic procurement agreement is neither a Purchase Order, nor a binding commitment to buy anything. Hype all you want, but until the project investment dollars are secured, LNG buyers are lined up for most or all of the capacity, and a FID is made, all of this is window dressing.
Those of us who were actually in the LNG business understand this. But as pretty as this signing is, it does little to really move the ball forward.
And remember – if the gas line is built, but the LNG facility isn’t, the gas buyers in Southcentral Alaska will be on the hook for something like $30 billion.
Have they bribed our politicians such that they get a sweetheart deal on property tax, income tax and royalty avoidance.