Glenfarne Alaska LNG, LLC and POSCO International Corporation have announced that they have signed a strategic partnership agreement covering steel supply, LNG offtake, and investment for the Alaska LNG Project on the US Pacific Coast. Final agreements are reported to be subject to board approvals from both companies.
Steel supply agreement
Under the agreement, POSCO will supply a significant portion of the steel required for the construction of Alaska LNG’s 807-mile, 42-inch pressurized natural gas pipeline. This pipeline will connect Alaska’s North Slope gas resources with Southcentral Alaska, where the LNG export terminal in Nikiski will be located.
The partnership framework also includes a 20-year heads of agreement for the offtake of 1 million tons per annum of LNG on a FOB basis.
Strategic partnership and market strength
According to Glenfarne, POSCO’s involvement is seen as particularly valuable due to its dual role as South Korea’s largest steel producer, ensuring reliable steel supply, a major LNG importer, strengthening the project’s access to Asian markets.
The project is designed to transport enough natural gas to meet Alaska’s domestic demand, supply a 20 million tons per year LNG export terminal and be developed in two phases.