JERA is considering joining companies making commitments for purchases of liquefied natural gas from the Alaska LNG project, Reuters has reported, with a preliminary letter of intent mentioning 1 million tons annually over a 20-year period.
The developer of the Alaska LNG project, Glenfarne, has been busy in the past months finding companies willing to make offtake commitments for the $44-billion project that is being actively promoted by the Trump administration. The company is yet to make a final investment decision on Alaska LNG but plans to make one for the facility’s pipeline by the end of the year, and another for its export terminal in 2026.
Japanese companies have been particularly interested in the Alaska LNG project, for geographical reasons and because the government in Tokyo committed to buying $7 billion in U.S. energy per year as part of the trade deal with Trump to avoid tariffs.
Energy companies are ready to commit to buying $115 billion worth of LNG from Alaska once President Trump’s pet energy project gets done, Glenfarne said in June, noting that as many as 50 companies have expressed formal interest. However, there have been reports about Japanese companies expressing worry about the price tag of the project, which may end up being too high.
Earlier this month, Reuters reported that Japan had hired Wood Mackenzie to study the long-term viability of Alaska LNG with a view to reassuring Japanese investors that their investment would be safe.
The Alaska LNG project involves an 800-mile gas pipeline running from Alaska’s North Slope to a liquefaction plant on the southern coast, enabling stranded reserves to reach global markets. Despite decades of planning, the sheer cost and remoteness have left the project on ice for quite a while. Now, President Trump is championing the project and 9its commercial viability appears to have improved.
By Irina Slav for Oilprice.com