The partnership will include POSCO supplying steel for the project's pipeline, a 20-year LNG offtake agreement, and a potential investment in the project.
In a significant move for the global energy market, Glenfarne Group and POSCO International Corporation have announced a strategic partnership to advance the Alaska LNG Project. The agreement, signed by Glenfarne’s Chief Executive Officer Brendan Duval and POSCO International’s Chief Executive Officer Kye In Lee at the Gastech energy conference in Milan, outlines a multifaceted collaboration that includes LNG offtake, steel supply, and a potential investment from POSCO.
Under the terms of the agreement, POSCO will supply a significant portion of the steel needed for the Alaska LNG pipeline. This 807-mile, 42-inch pressurized natural gas pipeline is designed to connect the North Slope gas fields to the export terminal in Nikiski, Southcentral Alaska.
In addition to the steel supply, the agreement includes initial terms for a 20-year Heads of Agreement (HOA) for 1 million tonnes per annum (MTPA) of LNG offtake on a Free-on-Board basis. This is the first announced HOA for the Alaska LNG Project, a crucial step toward securing the long-term contracts necessary to finance and execute such a large-scale venture. The offtake agreement underscores Korea's growing demand for LNG and Alaska's strategic position to supply it. The proximity of Alaska to key Asian markets gives the project a significant competitive advantage in terms of transit time and energy security.
Brendan Duval, CEO of Glenfarne Group, highlighted the momentum this partnership brings. “POSCO’s participation in Alaska LNG adds tremendous momentum as we drive this signature North American LNG project forward at a rapid tempo,” he said. "This agreement includes critical project components and demonstrates global support for unlocking some of the most strategically located LNG in the world. Korea is a valued target market for Alaska LNG and we greatly appreciate POSCO’s engagement as we advance Alaska LNG.”
The Alaska LNG Project is a joint venture between Glenfarne and the state-owned Alaska Gasline Development Corporation. “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,” added Adam Prestidge, President of Glenfarne Alaska LNG. “POSCO’s involvement underscores the project’s strategic, geographic, and economic competitive advantages as we rapidly progress toward a final investment decision on the Alaska LNG pipeline.”
This announcement follows closely on the heels of another major development for the project—the execution of a letter of intent with JERA Co a leading Japanese utility.
