(Oil Price) – Interest in the Alaska LNG export project has spiked since the war in the Middle East choked 20% of global LNG supply and sent Asian buyers scrambling for expensive spot cargoes.
Glenfarne Group, the majority owner and developer of the Alaska LNG Project, aims to sign soon binding offtake agreements with buyers and advance final investment decisions to later in 2026 and early 2027, company executives told Reuters on the sidelines of an energy conference in Tokyo on Monday.
“There’s a real interest, particularly with everything happening in the Middle East right now. Everyone would like to get those (preliminary deals) turned into long-term agreements,” Adam Prestidge, president of Glenfarne Alaska LNG, told Reuters.
The $44-billion Alaska LNG project, strongly promoted and supported by the Trump Administration over the past year, has received a shot in the arm from the conflict as buyers seek greater diversification, following initial lukewarm reception of the Alaska project among Asian LNG buyers and investors.
Alaska LNG is designed to deliver North Slope natural gas to Alaskans and export LNG to U.S. allies across the Pacific. An 800-mile pipeline is planned to transport the gas from the production centers in the North Slope to south-central Alaska for exports. In addition, multiple gas interconnection points will ensure meeting in-state gas demand.
Glenfarne now looks to take the FID for the pipeline in 2026, later than a previous target in late 2025, Prestidge told Reuters. The developer also aims for an FID on the export terminal in early 2027, the executive added.
The company is now working to finalize binding agreements and ensure financing, and all these steps “are all well underway,” Prestidge said.
Last month, just before the Middle East war erupted, Glenfarne signed a preliminary 20-year agreement with TotalEnergies, under which the French supermajor, a key global LNG trader, would buy 2 million tons per year of LNG from the Alaska LNG project.
By Tsvetana Paraskova for Oilprice.com
