Glenfarne Alaska LNG has entered a cooperation agreement with Thailand’s PTT Public Company for participation in the Alaska LNG project, including the procurement of two million tonnes per annum (mtpa) of LNG over 20 years.
Alaska LNG is managed by 8 Star Alaska, a joint venture between Glenfarne Group subsidiary Glenfarne Alaska LNG and the Alaska Gasline Development Corporation.
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The signing ceremony was attended by Thailand’s Permanent Secretary of the Ministry of Energy Prasert Sinsukprasert, and the US ambassador to Thailand, Robert Godec.
The cooperation agreement outlines the procedure for Alaska LNG and PTT to progress towards formal partnership agreements concerning the site, which includes long-term liquified natural gas (LNG) offtake arrangements.
Glenfarne Alaska LNG president Adam Prestidge said: “Glenfarne and Alaska LNG are pleased that PTT and the Thai government have realised the strategic security, cost, and stability advantages offered by the Alaska LNG project.
“With today’s agreement and previously announced agreements, Alaska LNG has now reserved 50% of its available third-party LNG offtake capacity to investment-grade counterparties, and the project has overwhelming interest from additional counterparties globally.”
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By GlobalDataThe Alaska LNG project features an 807-mile, 42in pipeline capable of transporting sufficient natural gas to satisfy Alaska’s domestic needs while also supplying the Alaska LNG export facility.
The economic and shipping fundamentals of the project enable it to supply LNG to Asia at prices that are lower than those of Henry Hub from the US Gulf Coast.
Furthermore, the project’s fully permitted status and strong support from federal, state, and local stakeholders significantly bolster its appeal to Asian LNG purchasers.
Glenfarne Group CEO and founder Brendan Duval said: “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.
“This agreement with PTT further symbolises 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.”
The Alaska LNG project will be executed in two independent, financially viable phases.
Glenfarne is actively engaging with pipeline contractors and collaborating with Worley to complete the final engineering to support a final investment decision for the domestic pipeline portion of the project.
