Alaska–Asia LNG corridor advances as POSCO backs Glenfarne’s project

September 12, 2025, by Dragana Nikše

Alaska LNG, a joint venture between U.S. energy player Glenfarne and the state-owned Alaska Gasline Development Corporation (AGDC), has signed an agreement with South Korea’s POSCO International to team up on the development of a liquefied natural gas (LNG) project in Alaska.

Commercial agreement signing; Source: Glenfarne Group

According to Glenfarne, the deal covers initial terms for providing critical project components, such as steel, paired with an LNG offtake and an investment in the Alaska LNG project. It provides a basis for the duo to progress to signing definitive agreements, which are expected to close once board approvals are obtained.

Under it, POSCO is set to supply a significant portion of the steel required for the 807-mile, 42-inch pressurized natural gas pipeline bringing what Glenfarne says are vast, stranded natural gas resources on the North Slope to the planned 20 million tonnes per annum (mtpa) Alaska LNG export terminal in Nikiski.

“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,” stated Glenfarne Alaska LNG President, Adam Prestidge.

The pipeline is planned to be built in two stages. Phase One will deliver natural gas approximately 765 miles from the North Slope to the Anchorage region. Phase Two includes the Alaska LNG facility, approximately 42 miles of pipeline under Cook Inlet, and pipeline compression equipment.

Worley was tasked with undertaking additional engineering and preparing a final cost estimate for the project in May. Glenfarne now notes that the work to complete the final engineering for the domestic portion of the pipeline is still underway.

A year-end final investment decision (FID) is planned for the pipeline portion, followed by a 2026 FID for the project’s LNG export components.

Furthermore, the latest deal will also cover a 20-year heads of agreement (HoA) for 1 million tonnes per annum (mtpa) of LNG offtake on a free-on-board basis. The U.S. player describes this as the first announced HOA for Alaska LNG.

“POSCO’s participation in Alaska LNG adds tremendous momentum as we drive this signature North American LNG project forward at a rapid tempo,” said Glenfarne’s Chief Executive Officer and Founder, Brendan Duval. “Korea is a valued target market for Alaska LNG and we greatly appreciate POSCO’s engagement as we advance Alaska LNG.”

Glenfarne believes the latest agreement demonstrates global support for unlocking “some of the most strategically located” LNG in the world. It comes on the heels of yesterday’s announcement of a letter of intent (LoI) for 1-mtpa offtake for the project with JERA.

‘Abundant’ gas resources spur JERA to explore offtake from Alaskan LNG project

Project & Tenders

According to the developer, preliminary commercial agreements have also been secured for more than half of Alaska LNG’s available third-party LNG offtake capacity. This includes contracts with Taiwan’s CPC and Thailand’s PTT, with negotiations underway to make these deals binding.