Alaska LNG, JERA sign letter of intent for LNG offtake
Alaska LNG, majority owned and developed by Glenfarne Alaska LNG LLC, signed a letter of intent (LOI) with JERA Co. Inc., Japan’s largest power generation company, for the potential sale of 1 million tonnes/year (tpy) of LNG from the Alaska LNG project over a 20-year term on a free-on-board basis.
The 20-million tpy Alaska LNG project, the only federally authorized LNG export project on the US Pacific Coast, Glenfarne said in a release Sept. 10, is a joint venture between Glenfarne and the Alaska Gasline Development Corp.
Since becoming the 75% shareholder and lead developer of the project earlier this year, Glenfarne has secured preliminary commercial agreements for more than half of the project's available third-party LNG offtake capacity, including agreements with CPC in Taiwan and PTT in Thailand.
Negotiations to advance these agreements to binding contracts are under way, the company said.
In a separate release, JERA said the LOI will "facilitate information exchange and collaboration" as it "prudently assesses the project’s timelines and economics."
Alaska LNG is expected to be developed through a phased approach.
Phase one construction focuses on the domestic pipeline to rapidly deliver North Slope gas to Alaskans and manage overall project risk. Phase two adds the LNG export terminal and associated infrastructure.
Glenfarne is targeting a late-2025 final investment decision (FID) for the Alaska LNG pipeline and a 2026 FID for the project’s LNG export components.