The CEO of energy developer Glenfarne stated on Sunday that an additional 3 million tonnes of liquefied natural gas (LNG) purchase agreements are required before a final investment decision can be made on the $44 billion Alaska LNG project.
Brendan Duval, CEO of Glenfarne, made these remarks at the Indo-Pacific Energy Security Ministerial Meeting and Business Forum in Tokyo. He indicated that the project's primary developer is in negotiations with two potential buyers to secure the remaining volume, supplementing the initially agreed annual sales of 13 million tonnes.
Major Japanese LNG buyers, including JERA and Tokyo Gas, have already consented to preliminary purchase agreements. Duval noted that Glenfarne must secure commitments for 80% of the LNG plant's targeted annual capacity of 20 million tonnes before proceeding with the final investment decision.
"The final 3 million tonnes will be secured shortly," Duval said.
The Alaska LNG project consists of two development phases: a pipeline and an LNG export facility, primarily targeting Asian markets.
The first phase is projected to transport natural gas approximately 765 miles (1,231 kilometers) from the North Slope to the Anchorage area. Duval explained that the second phase will involve adding nearly 42 miles of pipeline under Cook Inlet to deliver gas to the Alaska LNG export facility in Nikiski. Construction of the export facility is expected to commence one year after pipeline construction begins.
Duval added that Glenfarne anticipates starting natural gas deliveries via the project's pipeline segment by 2029.
The project will enable U.S.-produced LNG to reach Asian markets directly, bypassing the Panama Canal or routes around the Horn of Africa, thereby reducing transit time and costs.
"From a trade perspective, the distance from Alaska to Japan or Korea is about one-third that from the Middle East," said U.S. Interior Secretary Doug Burgum during the conference. "This significantly shortens shipping time and substantially enhances energy security."