Glenfarne and POSCO International Advance Strategic Partnership for Alaska LNG Project with LNG Offtake, Steel Supply, and Investment Commitments
Glenfarne Alaska LNG, LLC (“Glenfarne”) and POSCO International Corporation (“POSCO”) today announced a landmark agreement to advance a strategic partnership for the Alaska LNG Project, the only federally authorized LNG export project on the U.S. Pacific Coast. This new partnership encompasses multiple pillars of collaboration, including LNG offtake, steel supply, and a potential equity investment in the project, marking a major milestone in positioning Alaska LNG as a globally competitive and strategically located liquefied natural gas supplier.
The agreement establishes a structured pathway for Glenfarne and POSCO to move toward definitive agreements, subject to board approvals from both companies. If successfully concluded, the deal will formalize POSCO’s involvement in supplying steel, securing long-term LNG volumes, and supporting the financing and development of the project.
POSCO to Supply Steel for Alaska’s 807-Mile Natural Gas Pipeline
Under the initial terms of the agreement, POSCO will supply a significant portion of the steel required to construct the Alaska LNG Project’s 807-mile, 42-inch diameter pressurized natural gas pipeline. This critical piece of infrastructure will serve as the backbone of the project, linking Alaska’s vast and underutilized natural gas reserves on the North Slope to the Southcentral region, where the LNG export terminal will be located at Nikiski, on the Kenai Peninsula.
The pipeline’s scale highlights its importance: at 807 miles, it represents one of the largest single pipeline undertakings in North America, with the capacity to deliver gas for both Alaska’s domestic energy needs and international export markets. For Glenfarne, the pipeline is more than a transportation system—it is the key to unlocking stranded natural gas resources that have long remained untapped due to logistical and market challenges. Glenfarne is targeting a final investment decision (FID) on the Alaska LNG pipeline by the end of this year, underscoring the momentum driving the project forward.
20-Year LNG Offtake Agreement with POSCO
Equally significant, the agreement outlines initial terms for a 20-year Heads of Agreement (HOA) under which POSCO would secure 1 million tonnes per annum (MTPA) of LNG offtake from the project on a Free-on-Board (FOB) basis. This agreement represents the first publicly announced HOA for Alaska LNG, signaling a breakthrough for the project as it advances commercialization and secures long-term demand.
For POSCO, one of Korea’s major LNG importers, the offtake arrangement ensures a reliable, long-term supply of LNG from a strategic source. The proximity of Alaska to Asian markets—including Korea, Japan, and China—gives Alaska LNG a competitive shipping advantage compared to Gulf Coast LNG projects, with shorter routes reducing both time and transportation costs.
The Players: Glenfarne, POSCO, and Alaska LNG
The Alaska LNG Project is jointly owned by Glenfarne, which is the majority owner and lead developer, and the Alaska Gasline Development Corporation (AGDC), a state-owned entity tasked with advancing the state’s natural gas monetization strategy.
POSCO International, the global trading and investment arm of POSCO Group, is Korea’s largest steel producer and an influential player in the global energy market. As the largest sales representative of the POSCO Group and a leading LNG importer, POSCO brings not only steelmaking expertise but also deep LNG market experience and strong relationships across Asia.
Strategic Significance of the Partnership
Commenting on the agreement, Brendan Duval, Chief Executive Officer and Founder of Glenfarne, emphasized the importance of POSCO’s involvement:
“POSCO’s participation in Alaska LNG adds tremendous momentum as we drive this signature North American LNG project forward at a rapid tempo. This agreement includes critical project components and demonstrates global support for unlocking some of the most strategically located LNG in the world. Korea is a valued target market for Alaska LNG and we greatly appreciate POSCO’s engagement as we advance Alaska LNG.”
Adam Prestidge, President of Glenfarne Alaska LNG, further highlighted POSCO’s unique positioning in the deal:
“POSCO is one of the world’s foremost steel companies, a leading LNG importer in one of Alaska LNG’s most important markets, and now a significant partner in Alaska LNG. POSCO’s involvement underscores the project’s strategic, geographic, and economic competitive advantages as we rapidly progress toward a final investment decision on the Alaska LNG pipeline.”
Recent Momentum: Partnership with JERA
The announcement with POSCO follows closely on the heels of another major development: Alaska LNG’s letter of intent signed with JERA Co., Inc., one of the world’s largest LNG buyers and power producers based in Japan. The two back-to-back announcements demonstrate accelerating momentum behind the project, both in securing partners and in building confidence from key Asian markets that represent some of the world’s largest LNG importers.
Project Design: Pipeline and LNG Terminal
The Alaska LNG Project has been designed to meet both domestic and international energy demands. At full buildout, the system will include:
- 807-Mile, 42-Inch Natural Gas Pipeline: Connecting the North Slope with Southcentral Alaska.
- 20 MTPA LNG Export Terminal: Located in Nikiski, Alaska, capable of producing enough LNG to supply global markets.
- Dual-Phase Construction Plan:
- Phase One will deliver natural gas approximately 765 miles from the North Slope to the Anchorage region, enabling earlier access to gas for domestic use.
- Phase Two will add the LNG terminal, 42 miles of subsea pipeline under Cook Inlet, and compression facilities needed to fully enable exports.
By phasing construction, Glenfarne aims to accelerate project execution while ensuring each stage is financially viable and operationally effective.
Engineering and Development Work
To advance the project’s technical foundation, Glenfarne is working with Worley, a global engineering firm, to complete final engineering work for the domestic portion of the Alaska LNG pipeline. This partnership with Worley provides the expertise needed to navigate the engineering complexities of building a large-scale pipeline across Alaska’s challenging terrain and environmental conditions.
With a year-end FID targeted for the pipeline, Glenfarne is signaling confidence in its ability to move rapidly from planning to execution.
Broader Context: Alaska LNG and Global Energy Markets
The Alaska LNG Project arrives at a pivotal time for global energy markets. Demand for LNG in Asia continues to grow as countries seek secure supplies of lower-carbon fuels to complement renewables and support energy transitions. Korea, in particular, remains one of the world’s largest LNG importers, making POSCO’s involvement strategically aligned with both national energy security goals and global decarbonization efforts.
Moreover, Alaska LNG is uniquely positioned geographically. Unlike U.S. Gulf Coast LNG terminals that rely on long and sometimes congested shipping routes through the Panama Canal or around Cape Horn, Alaska LNG can reach Asian markets directly across the Pacific in significantly less time. This not only reduces shipping costs but also lowers associated emissions, enhancing the project’s competitiveness.
