Alaska’s $55B LNG Mega-Project In Talks With More Buyers Ahead Of FID
Russia Imports Indian Fuel as Refinery Crisis Deepens President Claudia Sheinbaum said hydraulic… Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com.
Two years ago, Alaska LNG wasstruggling to secure the private financingneeded to move forward, with high Arctic construction costs, logistical complexities and massive upfront property tax burdens making lenders and potential Asian buyers hesitant to commit.
But since then, the outlook for the$55-billion megaprojecthas improved considerably.
The proposed 800-mile pipeline and LNG export project has gained strong backing from the Trump administration, with PresidentTrump pushing Japanand South Korea in particular to invest in the project and purchase its gas as part of broader efforts to reduce their trade surpluses with the United States."If you get the commercial offtakers for the gas, financing is pretty straightforward," Energy Secretary Chris Wright told CNBC last year.
"There [are] countries around the world looking to shrink their trade deficit with the United States, and of course, a very easy way to do that is to buy more American energy," Wright said.
And now, the giant project has come a step closer to finally becoming reality: Lead developer Glenfarne Group hasrevealedthat it’s talking to two more potential buyers in a bid to secure offtake agreements for another 3 million metric tons of LNG before the company makes a final investment decision (FID).
Glenfarne Group says it requires 80% of its 20-million-ton target capacity covered before making its FID, having secured offtake agreements for more than 13 million tons so far.
Related: Iran Says Hormuz Will Stay Closed Until U.S.
Meets Its Conditions Japan’s LNG giants Tokyo Gas and JERA are among the companies that have already signed preliminary offtake agreements with the company.
Glenfarne owns a 75% stake in the venture with state-backed Alaska Gasline Development Corporation (AGDC) owning the rest.
“(The) last 3 million tons will move very quickly,” Glenfarne CEO Brendan Duval said at a business forum in Tokyo.
Alaska LNG is a dual-phase project designed for fast-track development.
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