Alaska LNG Project Secures Major Supply Deal with POSCO International: A Deep Dive into the Future of US LNG Exports
The landscape of global energy is undergoing a notable shift, and the Alaska LNG project is poised to play a pivotal role. On December 4th, 2025, at 18:12:00 AKST, Glenfarne‘s Alaska LNG unit announced the finalization of a landmark 20-year agreement with South Korean trading giant POSCO International to supply 1 million tonnes per annum (mtpa) of liquefied natural gas (LNG). This deal, building upon a preliminary agreement established in September 2025, underscores the escalating global demand for secure and diversified energy sources, particularly in the wake of geopolitical instability. this isn’t just a commercial agreement; it’s a strategic move with far-reaching implications for the US energy sector and the evolving dynamics of the Asia-Pacific market.
The Geopolitical Catalyst & Rising LNG Demand
the surge in global LNG demand is inextricably linked to the Russian invasion of Ukraine in 2022.This event dramatically disrupted established gas supply routes to Europe, forcing nations to aggressively seek alternative sources. According to the International Energy Agency (IEA)’s December 2025 report, global LNG trade increased by 16% in 2024, and is projected to grow another 8% in 2025, driven primarily by demand from Europe and Asia. This has created a competitive environment where buyers are prioritizing long-term supply contracts with reliable exporters like the united States.
Glenfarne’s Alaska LNG: Building a North slope Energy Hub
glenfarne, having assumed majority ownership and lead growth responsibilities for the Alaska LNG project in March 2025, has rapidly gained momentum. The company has already secured preliminary commercial commitments totaling 11 mtpa of LNG with buyers across key Asian markets - Japan, Korea, Taiwan, and Thailand. This demonstrates a clear strategy to establish Alaska as a major LNG export hub.
The project itself is ambitious, involving the construction of an 807-mile pressurized natural gas pipeline connecting the vast gas reserves of Alaska’s North Slope to Southcentral Alaska and, crucially, a planned LNG export terminal. This infrastructure is designed to unlock previously inaccessible resources and deliver them to global markets. The pipeline’s design incorporates advanced materials and construction techniques to withstand the challenging arctic environment, a critical consideration for long-term operational reliability.
| Project Component | Key Details |
|---|---|
| Pipeline Length | 807 miles |
| LNG Supply to POSCO | 1 mtpa |
| Contract Duration | 20 years |
| Total Preliminary Commitments | 11 mtpa |
POSCO’s Strategic Investment & Pipeline Support
The agreement with POSCO International extends beyond a simple supply contract. POSCO will contribute a significant,though currently undisclosed,capital investment into the Alaska LNG project prior to the final investment decision (FID). This demonstrates a strong commitment to the project’s success and provides crucial financial backing.
Furthermore, POSCO will provide a ample portion of the high-strength steel required for the construction of the 807-mile pipeline.This vertical integration streamlines the supply chain, reduces potential delays, and leverages POSCO’s expertise in materials science. As a leading global steel producer, POSCO’s involvement ensures the pipeline will be built to the highest standards of safety and durability. I’ve personally witnessed the importance of robust material sourcing in large-scale infrastructure projects; a reliable supply chain is paramount to staying on schedule and within budget.
Final Investment Decision & future Outlook
Glenfarne is targeting a final investment decision (FID) by the end of 202
