Japanese electric company signs letter of intent for 20 years of Alaska natural gas
ANCHORAGE, Alaska (KTUU) — A preliminary agreement to potentially sell to sell 20 million tons of liquefied natural gas to Japan’s largest electric company is in agreement with Alaska LNG, according to the company that owns the majority of the natural gas operation.
Japan-based JERA Co. signed a letter of intent Wednesday expressing interest in buying and potentially hauling 1 million tons of Alaska natural gas per year for a 20-year period from Glenfarne Alaska LNG, the developer that owns the majority of the project.
The natural gas is expected to flow from the state’s North Slope, where development is being planned by Glenfarne.
The letter of intent also includes initial terms for another company — POSCO International Corporation, a sales representative of South Korea’s biggest steel producer — to supply a “significant portion” of steel needed to build the planned natural gas pipeline.
Both agreements require board approvals and conversion to binding contracts before becoming final commitments. Glenfarne said it is expected to know by the end of 2025 the final details of its investment in Alaska LNG.
The project is expected to bring roughly 3.5 billion cubic feet of natural gas per day on a more than 800-mile journey from the North Slope to a liquefaction plant in Nikiski on the Kenai Peninsula.
“[Wednesday’s] announcement by JERA and Glenfarne is another important step forward for the Alaska LNG project,” U.S. Energy Secretary Chris Wright said in a prepared statement. “Alaska LNG will not only be one of the greatest energy infrastructure projects in our nation’s history, but also provides enormous energy security to the United States and our allies.”
The preliminary commitment will help provide a key funding source for the multibillion-dollar project, which has been a foundation of President Donald Trump’s efforts to push for energy independence since he retook the Oval Office in January.
On his second day in office, Trump reversed a Biden-era pause on LNG development in order to “unleash American Energy Dominance.”
In February, Trump announced a “joint venture” between the United States and Japan, meeting with Japanese Prime Minister Shigeru Ishiba.
“Japan will soon begin importing historic new shipments of clean American liquefied natural gas in record numbers,” Trump said then.
In July, Trump announced a trade deal he said was worth $350 billion in investments with South Korea.
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