Alaska LNG could become South Korea’s first U.S. investment
The Alaska LNG project has emerged as South Korea’s likely first U.S. investment under a $200 billion trade deal, with Seoul signalling a possible announcement in late August or early September.
Chugach eyes North Slope gas from Alaska LNG
US energy major Glenfarne has signed a letter of intent (LoI) with the Alaskan utility Chugach Electric Association to advance a gas supply deal tied to the $44 billion Alaska LNG development. Chugach wants to source North Slope gas via the Alaska gas pipeline, designated to meet Alaska’s domestic needs and supply feedgas to produce 20 mtpa of LNG for export.
White House supports Alaska LNG tax reform
The White House is supporting the Alaska LNG tax reform, with a volumetric tax on feedgas flows meant to reduce early-stage fiscal burdens for the long-delayed $44 billion LNG export project. Financial close on Phase 1 is envisaged later this year.
Alaska LNG hands equipment contract to Baker Hughes
US developer Glenfarne has selected Baker Hughes to supply refrigerant compressors for the Alaska LNG terminal and power generation equipment for the North Slope gas treatment plant. Baker Hughes also pledged a “strategic investment” in the project.
Tokyo Gas intends to offtake 1 mtpa LNG from Alaska
Tokyo Gas has signed a Letter of Intent (LoI) to offtake of 1 tonne per annum (mtpa) from the Alaska LNG project, majority owned and developed by Glenfarne. The deal brings the 20 mtpa LNG project in Nikiski, Kenai Peninsula, closer to financial close.
Engineering study on Alaska pipeline to be completed this year
Proponent of LNG exports from Alaska expect to finish the key engineering and cost assessment for an 800-mile gas pipeline stretching from the North Slope to the Gulf of Alaska by the end of this year, according to US Interior Dough Burgum. The pipeline is critical for securing feedgas for Alaska’s $44 billion LNG export terminal.
JERA signs LoI to offtake 1 mtpa of LNG from Alaska
Japan’s largest utility JERA today signed a Letter of Intent (LoI) to buy 1 mtpa of liquefied natural gas from the Alaska LNG project over a 20-year term on a Free-on-Board basis. JERA is on a buying spree, and CEO Yukio Kani seeks to procure some 5.5 mtpa through long-term contracts to meet future demand and avoid future spot purchases.
Japan joins Alaska LNG, Trump claims raising pressure on Korea
The Japanese government will participate in the Alaska LNG project, President Trump claims, raising pressure on South Korea to follow suit. Fresh investment will allegedly come from the $550 billion fund that Japan disclosed during tariff negotiations with the United States.
PTT to offtake 2 mtpa from Glenfarne’s Alaska LNG project
Glenfarne, lead developer of Alaska LNG, has announced Thailand’s largest traded company PTT signed an agreement to offtake 2 mtpa of LNG from the terminal over a 20-year term. Shipments from Alaska to Asia are priced lower than Henry Hub-indexed cargoes from the U.S. Gulf Coast.
Taiwan to buy Alaskan LNG, mulls to invest in the project
Taiwan's state-owned energy company CPC Corp is considering investing into the Alaska LNG export project, having signed an initial offtake agreement with AGDC to buy LNG from the venture. The deal was signed on a tour of Alaska’s Governor Mike Dunleavy across Asia, seeking additional investors for the $44 billion Alaska LNG project.
Cost overruns and limited firm offtake had for long delayed the Alaska LNG venture – but now the project became a priority of the US Trump administration. Gov. Dunleavy and senior officials from Alaska Gasline Development Corporation (AGDC), a state entity developing the liquefaction project, are currently touring Asia with the aim of securing firm offtake agreements and private investment.
Apart from Taiwan, utility buyers in Japan and South Korea have also been approached to step up their LNG imports as the United States seeks to balance its trade deficit with these countries.
The letter of intent (LoI), signed by CPC Corp, is not binding but could sway further Asian LNG buyers to sign on for firm offtake of Alaska LNG. As part of the LoI deal, CPC wants to invest in the export project though the exact amount is still subject to discussions.
Firm offtake its vital for project developers to reach financial close on the $44 billion Alaska LNG project, one of the most expensive liquefaction projects in the world. The venture has been government funded after ExxonMobil, ConocoPhillips, and BP backed out in 2016 citing cost concerns and headwinds from environmentalists.
Phase 1 of Alaska LNG focuses on construction of the pipeline to deliver North Slope gas to interior and southcentral Alaska and resolve energy shortages on Cook Inlet. Infrastructure to liquefy the gas and export it will be developed in Alaska LNG Phase 2.
Feedgas for Alaska LNG is meant to be sourced from Prudhoe Bay and Point Thomson fields. These fields will produce some 3.5 billion cubic feet of gas per day. The proposed liquefaction terminal in Nikiski, southwest of Anchorage is designed to process, store and transport up to 20 million tons per year (mtpa) of LNG.
Realisation of the gas pipeline, for starters, has gained traction after Glenfarne in January teamed up with AGDC agreeing to jointly Alaska Export Facility, Pipeline, and a Carbon Capture facility. Moreover, Glenfarne and ENSTAR Natural Gas Company also have agreed to advance an LNG import project utilizing the Alaska LNG export site.
Should the massive Alaska LNG venture go ahead, it would be Taiwan’s geographically closest source of US LNG given that cargoes from Alaska do not need to transit the Panama Canal to reach Asia.
