Alaska LNG Company CEO: Need More Purchase Commitments Before Making Final Investment Decision

Glenfarne CEO Brendan Duval said on Sunday that the company still needs to secure a 3 million ton liquefied natural gas (LNG) purchase agreement before making a final investment decision on the $44 billion Alaska LNG project.

Speaking at the Indo-Pacific Energy Security Ministerial Conference and Business Forum in Tokyo, Duval stated that the project’s main developers are negotiating with two potential buyers to increase the remaining sales volume beyond the initially agreed 13 million tons per year.

Major Japanese LNG buyers JERA and Tokyo Gas (9531.T) have agreed to sign preliminary purchase agreements. He said that before finalizing the investment, Glenfarne needs to ensure that the LNG plant’s target annual capacity of 20 million tons is at least 80% covered by purchase agreements.

“The final 3 million tons will be in place soon,” Duval said.

The Alaska LNG project includes two development phases—pipelines and LNG export facilities, primarily targeting Asian markets.

Phase one is expected to transport about 765 miles (1,231 kilometers) of natural gas from the North Slope to the Anchorage area. Duval said that the second phase will add nearly 42 miles of pipeline to deliver natural gas to the Alaska LNG export facility in Nikiski, which is expected to begin construction one year after pipeline construction starts.

Duval added that Glenfarne expects to begin transporting natural gas through the pipeline portion of the project by 2029.

The project will open a direct route for U.S.-produced LNG to Asian markets without passing through the Panama Canal or detouring around the Horn of Africa, reducing transportation time and costs.

During the conference, U.S. Secretary of the Interior Doug Burgum stated, “From a trade perspective, the distance from Alaska to Japan or South Korea is about one-third of that from the Middle East.” This significantly shortens shipping times and greatly enhances energy security.