This story requires a subscription
This includes a single user license.
Glenfarne, via its unit Glenfarne Alaska LNG, and Posco International signed the initial deal in September this year.
The agreement defined 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.
Glenfarne said on Thursday that Posco International will 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 also said that the two firms signed 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 the deal, the first HoA signed for the Alaska LNG project, establishes commercial terms for the sale of LNG to Posco International.
Also, the two firms agreed on a pre-FID capital investment in Alaska LNG by POSCO International.
Glefarned did not provide further information.
Since becoming Alaska LNG majority owner in March, Glenfarne has secured preliminary commercial commitments with LNG buyers in Japan, Korea, Taiwan, and Thailand for 11 mtpa of LNG, the firm said.
These include the HoA with POSCO International and agreements with Tokyo Gas, JERA, CPC, and PTT.
Glenfarne also recently selected compatriot energy services firm Baker Hughes to supply main refrigerant compressors for the planned Alaska LNG terminal.
Baker Hughes has also committed to a strategic investment to support the Alaska LNG project.
