Alaska LNG Project Stalls on Final Investment Decision Over Oftake Commitments

The Alaska LNG project is awaiting further offtake commitments before making its final investment decision. Glenfarne, the lead developer of the $44 billion project, needs to secure agreements for an additional 3 million metric tons of liquefied natural gas (LNG) on top of the 13 million tons already preliminarily agreed upon. This would bring the total secured under offtake deals to 80% of the LNG plant's targeted annual capacity of 20 million tons, according to Glenfarne CEO Brendan Duval.

JERA and Tokyo Gas are among the companies that have already signed preliminary agreements with Glenfarne. However, the remaining 3 million tons will be secured through negotiations with two potential buyers. 'The last 3 million tons will move very quickly,' Duval said during the Indo-Pacific Energy Security Ministerial and Business Forum in Tokyo.

The Alaska LNG project combines a pipeline and an LNG export facility aimed at supplying Asian markets, primarily Japan and Korea. The project would reduce transit time and costs by providing direct access to these markets without passing through the Panama Canal or around the Horn of Africa. 'Alaska is about one-third the distance to Japan or Korea than it is to the Middle East,' U.S. Interior Secretary Doug Burgum said during the conference.