Glenfarne, which signed the deal via its unit Glenfarne Alaska LNG, said on Thursday that the partnership will include steel supply, LNG offtake, and an investment with respect to the Alaska LNG project.
The agreement defines the process for Glenfarne and Posco to move forward on definitive agreements, which will close pending board approvals by both sides, according to the firm.
This agreement will include initial terms for POSCO to supply a significant portion of the steel required for Alaska LNG’s 807-mile, 42-inch pressurized natural gas pipeline.
The Alaska LNG pipeline will connect Southcentral Alaska, home to Alaska’s population center and the Alaska LNG export terminal, with Alaska’s vast, stranded natural gas resources on the North Slope.
Earlier this year, Glenfarne signed definitive agreements with state-owned AGDC to become the majority owner of the giant Alaska LNG export project.
The LNG project is designed to deliver North Slope natural gas to Alaskans and Alaska utilities and export up to 20 million tonnes of LNG per year.
Alaska LNG’s three subprojects include the pipeline, the LNG export terminal in Nikiski, Alaska, and a North Slope-based carbon capture plant to remove and store seven million tons of carbon dioxide annually.
LNG HoA
Glenfarne said the agreement will include initial terms for a 20-year heads of agreement for 1 million tonnes per annum (mtpa) of LNG offtake on a free-on-board basis.
The US firm noted that this will be the first announced HoA for Alaska LNG.
“Posco’s participation in Alaska LNG adds tremendous momentum as we drive this signature North American LNG project forward at a rapid tempo,” Glenfarne CEO and founder Brendan Duval, said.
“This agreement includes critical project components and demonstrates global support for unlocking some of the most strategically located LNG in the world. Korea is a valued target market for Alaska LNG and we greatly appreciate Posco’s engagement as we advance Alaska LNG,” he said.
Today’s deal follows Alaska LNG’s announcement yesterday of the execution of a letter of intent with Japan’s Jera.
Under the LoI, Jera will buy one mtpa of LNG from the Alaska LNG project over a 20-year term on a free-on-board basis.
