Glenfarne, POSCO plan Alaska LNG partnership including LNG offtake and steel supply

Glenfarne Alaska LNG LLC and Korea’s POSCO International Corp. have entered into an agreement “to advance a strategic partnership” for development of the Alaska LNG project.

The partnership will include steel supply, LNG offtake, and an unspecified investment. The companies will move forward on definitive agreements, which require approvals by the boards of directors.

This agreement will include initial terms for POSCO to supply an unspecified portion of the steel required for Alaska LNG’s 807-mile, 42-in OD pressurized natural gas pipeline. Glenfarne referred to the steel portion as ‘significant.’

The Alaska LNG pipeline is expected to connect south central Alaska with Alaska’s stranded natural gas resources on the North Slope.

Glenfarne is targeting final investment decision (FID) for the pipeline by yearend.

The agreement is expected to include initial terms for a 20-year heads of agreement for 1 million tonnes/year (tpy) of LNG offtake on a free-on-board basis.

The agreement comes on the heels of Alaska LNG’s letter of intent execution with JERA Co. Inc.

Alaska LNG project

The Alaska LNG project consists of a pipeline capable of transporting natural gas to Alaska’s domestic market and the 20-million tpy Alaska LNG export plant in Nikiski, Alas.