Thailand’s PTT, Glenfarne ink Alaska LNG cooperation deal

According to a statement by Glenfarne, state-owned PTT plans to purchase 2 million tonnes per annum (mtpa) of LNG from Alaska LNG over a 20-year period.

Glefarne said that the Cooperation Agreement defines the process for Alaska LNG and PTT to move toward definitive agreements for partnership on Alaska LNG, including long-term LNG offtake.

In May, Thailand’s Ministry of Energy announced that PTT and Egco will engage in further discussions to potentially participate in the development and buy volumes from the planned Alaska LNG project.

Alaska LNG is held under 8 Star Alaska, a joint venture between Glenfarne’s unit, Glenfarne Alaska LNG, the majority owner and lead developer of Alaska LNG, and the Alaska Gasline Development Corporation.

Earlier this year, Glenfarne signed definitive agreements with state-owned AGDC to become the majority owner of the giant Alaska LNG export project.

50 percent of available third-party LNG offtake

Glenfarne recently said that over 50 firms have formally expressed interest in the Alaska LNG project, with a contract value exceeding $115 billion.

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.

Glenfarne said it is “actively engaged” with pipeline contractors and partnering with Worley to complete the final engineering to support a final investment decision (FID) for the domestic pipeline portion of the project.

The company also continues to progress its strategic partner process for Alaska LNG, including partnerships related to equipment and material supply, services, investment, and customer agreements.

“With today’s agreement and previously announced agreements, Alaska LNG has now reserved 50 percent of its available third-party LNG offtake capacity to investment grade counterparties, and the project has overwhelming interest from additional counterparties globally,” Adam Prestidge, president of Glenfarne Alaska LNG, said in the statement.

“Recent events in the Middle East once again underscore the significant need for Alaska LNG that comes from a secure, stable, and abundant source without traversing through potentially contested waters,” said Brendan Duval, CEO and founder of Glenfarne.

“This agreement with PTT further symbolizes Alaska LNG’s tremendous momentum, well on its way to becoming a reality that will solve Alaska’s natural gas shortage while providing jobs, business opportunities, and increased economic development for Alaska residents, businesses, and military facilities,” he said.