Glenfarne Alaska LNG LLC said that Thailand’s PTT Public Company Limited has signed a cooperation agreement for strategic participation in the Alaska LNG project.
The cooperation agreement defines the process for Alaska LNG and PTT to move toward definitive agreements for partnership on Alaska LNG, including long-term liquefied natural gas (LNG) offtake.
The agreement includes the potential procurement of 2 million metric tons per annum (mtpa) of LNG from Alaska LNG over a 20-year term, Glenfarne said in a statement.
“Glenfarne and Alaska LNG are pleased that PTT and the Thai government have realized the strategic security, cost, and stability advantages offered by the Alaska LNG project,” Glenfarne Alaska LNG President Adam Prestidge said.
“With today’s and previously announced agreements, Alaska LNG has now reserved 50 percent of its available third-party LNG offtake capacity to investment grade counterparties, and the project has overwhelming interest from additional counterparties globally,” Prestidge added.
“Recent events in the Middle East once again underscore the significant need for Alaska LNG that comes from a secure, stable, and abundant source without traversing through potentially contested waters,” Glenfarne CEO Brendan Duval said.
“This agreement with PTT further symbolizes Alaska LNG’s tremendous momentum, well on its way to becoming a reality that will solve Alaska’s natural gas shortage while providing jobs, business opportunities, and increased economic development for Alaska residents, businesses, and military facilities,” Duval added.
The Alaska LNG project consists of an 807-mile, 42-inch pipeline capable of transporting enough natural gas to meet both Alaska’s domestic needs and supply the full 20-mtpa Alaska LNG export facility, the Glenfarne Group LLC subsidiary said.
The pipeline will be built in two independent, financially viable phases. Phase one will deliver natural gas approximately 765 miles from the North Slope to the Anchorage region. Phase two adds compression equipment and approximately 42 miles of pipeline under the Cook Inlet to the Alaska LNG Export Facility in Nikiski, which will be constructed at the same time as the LNG export facility, according to the release.
Glenfarne said it is actively engaged with pipeline contractors and partnering with Worley to complete the final engineering to support a final investment decision (FID) for the domestic pipeline portion of the project. The company stated it also continues to progress its strategic partner process for Alaska LNG including partnerships related to equipment and material supply, services, investment, and customer agreements.
“Alaska LNG’s economic and shipping fundamentals allow it to deliver LNG into Asia at prices that are lower than Henry Hub pricing from the U.S. Gulf Coast,” Glenfarne said.
“The project’s fully permitted status, close proximity, energy security benefits, and robust federal, state, and local stakeholder support further enhance the value proposition for Asian LNG buyers,” the company noted.
Alaska LNG is held under 8 Star Alaska LLC, a joint venture between Glenfarne Alaska LNG, the majority owner and lead developer of Alaska LNG, and Alaska Gasline Development Corporation.
Glenfarne Group is also the owner of Texas LNG, which recently announced that its capacity is fully sold out, with an FID expected later in the year, according to the release.
Glenfarne Group said it owns 60 operating assets in the energy sector across five countries. Together with Alaska LNG, its permitted LNG portfolio totals 32.8 mtpa of capacity under development.
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