American LNG will go to Japan

The development of the Alaska LNG project gains another partner in Asia. Tokyo Gas – one of the most experienced players in the liquefied natural gas market – announced the will of long-term reception of LNG from the planned terminal off the coast of Alaska.

New impulse for the Glenfarne project

Although during our meetings with partners from Japan and South Korea, about which we wrote earlier on our portal (link to text) there have been no unambiguous declarations, the agreement concluded on 24 October between Tokyo Gas and Glenfarne proves that American diplomacy is having tangible effects. Launched still during Donald Trump's first term of office, the offensive around the Alaska LNG project – supported by federal and state decisions – today translates into real export contracts, strengthening the position of the United States as a key LNG supplier for Eastern Asian countries.

The political foundations of this process were also referred to by Alaska's governor, Mike Dunleavy, who, in an entry published on October 24, recalled that it was the decisions made during Donald Trump's presidency that opened the way to exploit the state's energy potential. As he wrote:

At the same time, this confirms the effectiveness of an energy strategy based on long-term commercial relations and the exploitation of Alaska's potential as one of the most convenient directions for the supply of liquefied gas to Asia.

Glenfarne Group, a majority shareholder of the Alaska LNG project, reported the signing of the letter of intent from Tokyo Gas. The agreement provides for the delivery of one million tons of LNG per year (1 MTPA), which means for the American developer another step towards commercialisation of the project and ensuring its long-term viability.

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The Japanese partner's declaration is not only business but also symbolic – Tokyo Gas, as the first importer of LNG from Alaska before more than half a century ago, returns to this cooperation in the new technological and geopolitical system.

Strategic terminal

Draft Alaska LNG is currently the only approved LNG export investment from the western coast of the United States. Since taking over the role of the lead developer by Glenfarne in March this year, the company has already signed a number of initial agreements with recipients from Japan, South Korea, Taiwan and Thailand.

As Brendan Duval stressed, President Glenfarne, Alaska's strategic location allows gas to be delivered to key markets in North-East Asia without having to transit through the Panama Canal. This represents an important competitive advantage, particularly in the context of growing transport uncertainty on other maritime routes.

1300 km pipeline – key element of the project

The implementation of the Alaska LNG project includes the construction of a pipeline over 1290 km long and 109.22 cm in diameter, which will connect gas deposits in the northern part of the state to the new Cook Bay terminal. The stage of detailed engineering and cost validation is currently being completed by Worley.

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It is worth noting that the project is being developed in a two-stage model: the first phase assumes the construction of a national transport pipeline to Anchorage, while the second stage provides for an expansion of LNG export infrastructure. The project also included the state of Alaska, represented by Alaska Gasline Development Corporation.

Tokyo Gas returns to the North Pacific Trail

Tokyo Gas' presence in the project is not accidental. Japan remains the largest LNG importer in the world, and the company itself is one of the pioneers of this segment. Day Energy transition and efforts to diversify energy sources, LNG from Alaska can be an important component of the Japanese energy security strategy.

From Glenfarne's perspective, the letter of intent from Tokyo Gas not only strengthens the commercial credibility of the entire project, but also facilitates the closure of funding and construction.

Written by Mariusz Dasiewicz