Alaska LNG Project Gains Momentum Amid Middle East Conflict
The $44 billion Alaska LNG project is gaining momentum due to the war in the Middle East, which has disrupted gas supplies from Qatar. Glenfarne, the lead developer, aims to make final investment decisions for the project's pipeline and export terminal by 2026-27 and start shipping liquefied natural gas (LNG) in 2031.
Glenfarne needs to secure binding offtake deals for 80% of the planned export capacity of 20 million metric tons a year, but has so far lined up commitments for 13 million tons. The company is in talks with two potential offtakers for an additional 3 million tons.
The war in the Gulf has forced Qatar to stop all LNG shipments due to the blockage of its export route through the Strait of Hormuz. Glenfarne CEO Brendan Duval said this highlights the unique advantage of the Alaska LNG project, which can deliver LNG directly to North Asia without relying on a chokepoint.