The Alaska LNG project marked a major milestone today as Glenfarne Alaska LNG, LLC announced a strategic partnership with Thailand’s PTT Public Company Limited, reinforcing the project’s growing global appeal and accelerating its path toward a final investment decision, which is expected this fall.
Under a newly signed Cooperation Agreement, PTT, Thailand’s largest publicly traded company, will pursue a long-term arrangement to purchase 2 million tonnes per annum of liquefied natural gas from the Alaska LNG facility for 20 years. The agreement outlines a roadmap for deeper cooperation, with the goal of moving toward definitive partnership and offtake contracts.
The signing, witnessed by Thai Energy Permanent Secretary Dr. Prasert Sinsukprasert and US Ambassador to Thailand Robert Godec, marks a significant diplomatic and commercial achievement for the project. It brings the Alaska LNG project’s reserved third-party offtake capacity to 50%, with all commitments so far secured from investment-grade counterparties.
The Alaska LNG project is being developed by 8 Star Alaska, LLC, a joint venture between Glenfarne Alaska LNG, the project’s majority owner and lead developer, and the state-owned Alaska Gasline Development Corporation. With its fully permitted status, strategic location, and strong support from the Trump Administration, the project continues to attract interest from international buyers seeking a stable, long-term energy supply.
The project boasts a competitive edge in the global LNG market by offering a shorter shipping route to Asia compared to Gulf Coast exports, and it avoids the chokepoints of contested maritime regions. As geopolitical uncertainty disrupts traditional energy corridors, Alaska LNG’s northern route offers a more secure alternative for Asian buyers.
The Alaska LNG infrastructure includes an 807-mile, 42-inch pipeline designed to transport natural gas from the North Slope to Southcentral Alaska, meeting in-state demand while supplying the planned 20 MTPA export facility in Nikiski.
Construction will take place in two financially independent phases, with Phase One delivering gas to the Anchorage-Southcentral region and Phase Two completing the connection to the export terminal.
Glenfarne is actively working with global engineering firm Worley to finalize the pipeline’s design and is progressing discussions with construction partners. Simultaneously, the company continues its search for strategic partnerships spanning investment, equipment supply, and long-term purchase agreements.
Glenfarne’s growing LNG portfolio already includes Texas LNG, which is fully subscribed and expected to reach final investment decision this year, as well as Magnolia LNG in Louisiana and the largest LNG import operation in Colombia. Including Alaska LNG, the company now has 32.8 MTPA of permitted LNG capacity under development.
With global interest building and key commercial partnerships advancing, the Alaska LNG project is gaining critical momentum.
Good news, however, Alaskans need to excercise due diligence if the Alaska Gasline Development Corporation is going to be the other major partner with Glenfarne. Some questions that need to be asked are; how much State money will be pledged to this project, what is Alaska Gasline’s track record for large energy infra structure projects such as this, what are the benefits to average Alaskans and lastly what are the risks to Alaska residents.
But will the price of Natural Gas at the Southcentral distribution point sold to various middle men be based on Henry Hub Natural Gas Price (weekly or monthly or quarterly average) or some other artificially higher price? Not holding my breath on seeing lower natural gas heating bills in my lifetime.
SEE
‘https://www.cmegroup.com/markets/energy/natural-gas/natural-gas.html