Under the LoI, Jera will buy one million tonnes per annum (mtpa) of liquified natural gas from the Alaska LNG Project over a 20-year term on a free-on-board basis, according to statements by US energy firm Glenfarne and Jera.
In June, Jera announced approximately 5.5 mtpa of LNG offtake from the US Gulf Coast which it said allows flexible access to the global LNG market, including Japan, at a “competitive” cost.
Alaska LNG offers “unique” advantages of abundant gas resources which are otherwise stranded and proximity to the growing LNG markets in Asia, which could contribute to the regional LNG supply security, Jera said.
The LoI will facilitate information exchange and collaboration with Glenfarne as Jera “prudently assesses the project’s timelines and economics,” the firm said.
More than half of Alaska LNG’s available LNG offtake capacity
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 an 807-mile 42-inch pipeline, the 20 mtpa 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.
Since becoming the 75 percent shareholder and lead developer of the Alaska LNG project in March of 2025, Glenfarne has secured preliminary commercial agreements for more than half of Alaska LNG’s available third-party LNG offtake capacity, including agreements with CPC in Taiwan and PTT in Thailand, according to the company.
Negotiations to advance these agreements to binding contracts are underway.
Glenfarne is in discussions with potential customers for LNG volumes exceeding Alaska LNG’s total capacity, the company said.
The company said it 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.
