Posco International CEO Lee Kye-in (left) and Glenfarne Group CEO and Founder Brendan Duval are posing for a commemorative photo after signing the agreement at the Gastech energy conference in Milan, Wednesday. (Glenfarne Group) Posco International, the trading and energy arm of steel giant Posco Group, signed a preliminary deal with US-based Glenfarne Group to explore cooperation on the Alaska LNG project, covering potential steel supply, LNG offtake and investment.
Signed at the Gastech energy conference in Milan on Wednesday, the non-binding agreement outlines initial terms for Posco to supply steel for the project’s planned 807-mile natural gas pipeline and to purchase 1 million tons per annum (MTPA) of LNG over 20 years. It is the first announced Heads of Agreement for the project.
The Alaska LNG project aims to connect the North Slope’s gas reserves to an export terminal in Southcentral Alaska. Glenfarne is targeting a final investment decision by the end of this year.
Posco International emphasized that the agreement is non-binding and subject to further review.
“Feasibility and profitability evaluations must be completed for each area of cooperation,” the company said. “A final decision on participation will be made through internal approval processes.”
Details remain confidential under a mutual non-disclosure agreement.
“Posco’s participation adds tremendous momentum,” said CEO Brendan Duval. “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.”
Alaska LNG is a joint venture between Glenfarne and the Alaska Gasline Development Corporation. Glenfarne is currently developing 32.8 MTPA of LNG export capacity across Alaska, Texas and Louisiana.
hyelimchung@heraldcorp.com