Glenfarne’s Alaska LNG project gains commercial momentum with Tokyo Gas and POSCO joining long-term offtake effort

The United States may soon see its first large-scale liquefied natural gas (LNG) export terminal on the Pacific Coast as Glenfarne Alaska LNG, LLC — a subsidiary of Glenfarne Group — continues to build commercial momentum behind the Alaska LNG project. With recent offtake commitments and strategic agreements from multiple Asian buyers including Tokyo Gas Co., Ltd. and POSCO International Corporation, the long-stalled pipeline-to-export project is showing new signs of viability.

Glenfarne Group officially became the lead developer and majority owner of the Alaska LNG project in March 2025 after securing a 75% stake through a joint venture with the Alaska Gasline Development Corporation, which retained the remaining 25%. The American energy infrastructure developer is now spearheading efforts to bring the project to final investment decision (FID) through phased construction, active engineering work, and a growing roster of international offtakers.

At an estimated cost of USD 44 billion, Alaska LNG is not only the most capital-intensive energy project in Alaska’s history but also the only federally permitted LNG export terminal on the U.S. Pacific Coast. The terminal, once complete, will produce 20 million tonnes per annum (MTPA) of LNG and is linked to an 807-mile, 42-inch pipeline designed to carry stranded natural gas from Alaska’s North Slope to the southern coastal town of Nikiski.

What strategic role does Tokyo Gas play in accelerating Alaska LNG’s commercial development?

Tokyo Gas Co., Ltd., one of Japan’s largest energy utilities, signed a Letter of Intent with Glenfarne Alaska LNG to offtake 1 MTPA of LNG, marking a return to Alaskan gas for a company that pioneered Japanese LNG imports more than five decades ago. According to Glenfarne Group’s Chief Executive Officer Brendan Duval, the involvement of Tokyo Gas not only reinforces Alaska LNG’s credibility but also reflects the strategic positioning of the project to supply clean, affordable energy to U.S. allies in the Indo-Pacific region.

While the agreement is not yet a binding contract, its significance lies in the momentum it brings to Glenfarne’s broader offtake campaign. Tokyo Gas’s participation follows other preliminary agreements signed in recent months with regional majors including JERA (Japan), POSCO (South Korea), CPC Corporation (Taiwan), and PTT Public Company Limited (Thailand). Together, these deals represent approximately 11 MTPA of potential LNG offtake — nearly 70% of the capacity Glenfarne is targeting to secure financial closure.

How does the POSCO partnership strengthen project execution and supply chain integration?

A separate agreement signed between Glenfarne and POSCO International Corporation in September 2025 represents a more integrated partnership, including not just LNG offtake but also steel supply for the pipeline infrastructure. POSCO, part of the POSCO Group and South Korea’s largest steel producer, will supply critical materials for the 807-mile pipeline while simultaneously committing to purchase 1 MTPA of LNG over 20 years.

The deal, which was formalized during the Gastech energy conference in Milan, lays out the structure for definitive agreements pending board approvals. Glenfarne Alaska LNG President Adam Prestidge said POSCO’s involvement underscores the project’s strategic advantages — combining resource availability, geographic positioning, and aligned regional demand.

Institutional sentiment has so far viewed POSCO’s participation as a signal that Glenfarne is de-risking both the capital expenditure and supply chain components of the Alaska LNG project. By integrating key partners upstream and downstream, Glenfarne appears to be mitigating some of the traditional hurdles that have stalled megaprojects in remote environments like Alaska.

What makes the Alaska LNG project different from Gulf Coast LNG infrastructure?

Unlike traditional Gulf Coast LNG terminals that rely on complex shipping routes through the Panama Canal or the Suez, the Alaska LNG terminal offers direct access to Asian markets. Nikiski’s location on the southern Alaskan coast enables faster, more fuel-efficient delivery to high-demand regions such as Japan, South Korea, Taiwan, and Thailand — many of which are increasingly focused on long-term energy security.

The Alaska LNG project’s phased approach is another distinctive feature. Phase One involves completing the domestic pipeline to deliver gas roughly 765 miles from Prudhoe Bay to the Anchorage region, enabling near-term demand coverage for local markets. Phase Two adds liquefaction capabilities, port infrastructure, and an additional 42 miles of pipeline under Cook Inlet to bring the gas to Nikiski for export.

Glenfarne is currently working with Worley Limited to finalize engineering and cost validation for the pipeline segment, with a final investment decision on the pipeline expected by the end of 2025. Analysts view this phased model as a pragmatic approach to securing financing while maintaining forward optionality on export infrastructure.

How much global interest has Glenfarne received and what is the financial implication?

Glenfarne Alaska LNG has received expressions of interest exceeding USD 115 billion from more than 50 companies across North America, Asia, and Europe, including commitments in areas such as LNG offtake, steel supply, engineering services, and direct investment. This growing list of interested parties signals a shift in sentiment toward U.S. LNG infrastructure at a time when energy security is once again front and center on the global policy agenda.

From a financing perspective, this broad commercial alignment will be crucial as Glenfarne looks to raise the capital required for full project buildout. With a total projected cost of USD 44 billion, the Alaska LNG project is one of the largest private energy infrastructure undertakings in the United States.

Institutional investors and energy analysts tracking the LNG space believe Glenfarne’s growing partner base and phased build strategy improve the project’s bankability. However, risk factors remain, including construction logistics across challenging Arctic terrain, cost inflation, and the need to convert non-binding LOIs into firm purchase agreements.

What is the outlook for the Alaska LNG project and what should investors watch?

For energy-sector stakeholders and infrastructure investors, the Alaska LNG project represents a high-stakes effort to unlock untapped North American gas for the global market. The next 12 months will be pivotal, with Glenfarne targeting a final investment decision on the domestic pipeline by late 2025. The export terminal FID is expected to follow thereafter.

Analysts expect further offtake announcements in the coming quarters, particularly as Glenfarne approaches binding agreements with Tokyo Gas and other major players. Any definitive supply deals, EPC contract awards, or financing updates will likely move the needle for investor confidence.

If successful, the Alaska LNG project could emerge as a geopolitical lever in the evolving energy transition landscape—delivering U.S. natural gas to Asian allies while reinforcing domestic infrastructure and job creation in Alaska.

Key takeaways: Glenfarne’s Alaska LNG project advances with Tokyo Gas and POSCO support

• Glenfarne Group has emerged as the majority owner and lead developer of the USD 44 billion Alaska LNG project, which includes an 807-mile pipeline and a 20 MTPA export terminal at Nikiski.
• Tokyo Gas Co., Ltd. signed a Letter of Intent for 1 MTPA of LNG offtake, marking a significant return to Alaskan gas supply for one of Japan’s largest energy utilities.
• POSCO International Corporation entered into a strategic partnership with Glenfarne involving both LNG offtake (1 MTPA over 20 years) and critical steel supply for the pipeline, enhancing supply chain integration.
• Other preliminary offtake agreements include deals with JERA (Japan), CPC Corporation (Taiwan), and PTT Public Company Limited (Thailand), bringing Glenfarne’s total announced commitments to 11 MTPA.
• Glenfarne is targeting a final investment decision on the domestic pipeline segment by the end of 2025, with Worley Limited completing engineering and cost validation.
• Over 50 companies have expressed formal interest in participating commercially in Alaska LNG, with a combined value exceeding USD 115 billion across offtake, services, and investment.
• The Alaska LNG project is the only federally authorized LNG export terminal on the U.S. Pacific Coast, offering a direct, shorter shipping route to Asian markets compared to Gulf Coast alternatives.
• Institutional investors see Glenfarne’s phased development strategy, partner base, and regulatory progress as strong indicators of eventual bankability—though cost, logistics, and binding agreements remain key hurdles.
• Analysts are watching for firm supply contracts, financing updates, and EPC awards as the next catalysts for Glenfarne’s path to construction and long-term value creation.