Glenfarne Alaska LNG has entered into an agreement with South Korea’s POSCO International to develop the Alaska LNG Project.

This strategic partnership will feature steel supply, liquefied natural gas (LNG) offtake and an investment in what is the only federally authorised LNG export project on the US Pacific Coast.

The agreement outlines the procedure for Glenfarne and POSCO to progress towards finalising definitive agreements, contingent upon receiving board approvals from both parties.

It outlines the initial terms for POSCO to provide a significant share of the steel needed for the construction of a 807-mile, 42in pressurised natural gas pipeline at the Alaska LNG Project.

This pipeline is a critical component of the project, designed to connect south-central Alaska with the North Slope's natural gas resources.

Glenfarne aims to reach a final investment decision (FID) by the end of the year for the pipeline, which is expected to be crucial in conveying natural gas to meet both domestic requirements in Alaska and the supply needs of the 20 million tonnes per annum Alaska LNG export terminal in Nikiski, Alaska.

Glenfarne CEO and founder Brendan Duval said: “POSCO’s participation in Alaska LNG adds tremendous momentum as we drive this signature North American LNG project forward at a rapid tempo.

“This agreement includes critical project components and demonstrates global support for unlocking some of the most strategically located LNG in the world. Korea is a valued target market for Alaska LNG and we greatly appreciate POSCO’s engagement as we advance Alaska LNG.”

The deal also encompasses the initial conditions for a 20-year heads of agreement (HoA) for 1mtpa of LNG offtake on a free-on-board basis, the first HoA announced for the Alaska LNG project.

Earlier this week, JERA, a Japanese energy company, signed a letter of intent with Alaska LNG regarding the sale of 1mtpa of LNG from the Alaska LNG Project.

Alaska LNG is a joint venture between state-run Alaska Gasline Development and Glenfarne, which holds the majority stake.

The construction of the pipeline will be undertaken in two independent phases.

Glenfarne is collaborating with Worley to finalise the engineering for the domestic portion of the pipeline.

Glenfarne's authorised North American LNG portfolio comprises a total of 32.8mtpa of capacity currently under development in Alaska, Texas and Louisiana.