Glenfarne Alaska LNG, a subsidiary of U.S. energy player Glenfarne Group, has signed a letter of intent (LoI) with Japan’s JERA for the sale of liquified natural gas (LNG) from its future project in Nikiski, Alaska.
Under the deal, the offtake of 1 million tonnes per annum (mtpa) will come from the Alaska LNG project over a 20-year term on a free-on-board basis. The project is being co-developed by Alaska Gasline Development Corporation (25%) and Glenfarne (75%), which came on board in March 2025 .
Described as the only federally authorized LNG export project on the U.S. Pacific Coast, Alaska LNG’s proximity to Asia is seen as an advantage by its developers, as it will allow exports to Asia at prices that are lower than LNG from the U.S. Gulf Coast, while reducing shipping emissions.
Brendan Duval , Glenfarne’s Chief Executive Officer and Founder, said: “Our agreement with JERA, one of the leading LNG companies in the world, follows months of committed discussions on both sides to open a new and diversified energy supply that strengthens energy security and spurs long-term economic growth for both Alaska and Japan. I am grateful for our partnership and collaboration as Glenfarne builds on this momentum with commercial parties across the Pacific region.”
Citing an analysis performed using the Department of Energy National Energy Technology Laboratory methodology, Glenfarne claims Alaska LNG will reduce global CO2 emissions by up to 77 million tonnes per year by offsetting growing coal use in Asia. The project is thus expected to be one of the lowest-carbon LNG projects in the world.
JERA expects the LOI to facilitate information exchange and collaboration with Glenfarne as the company assesses the project’s timelines and economics. The Japanese giant noted that Alaska LNG’s proximity to the growing LNG markets in Asia could contribute to regional energy security, offering advantages thanks to its “abundant” gas resources.
Ryosuke Tsugaru , JERA’s Chief Low Carbon Fuel Officer, stated: “We value the Alaska LNG Project for its prospects to provide reliable, stable, and competitive LNG supply. This LOI provides a platform for continued dialogue with Glenfarne, and as more details become available, we look forward to deepening our understanding of the project.”
The Alaska LNG project will feature an 807-mile pipeline, which the developer says can transport enough natural gas to meet both Alaska’s domestic needs and supply the full 20 mtpa Alaska LNG export facility. A phased development strategy is being used to progress the project.
Phase One will focus on the domestic pipeline to deliver North Slope gas to Alaskans and manage overall project risk. Glenfarne tasked Worley with completing the final engineering for the pipeline portion of the project in late May.
Phase Two will encompass the LNG export terminal and associated infrastructure. Glenfarne is targeting a late-2025 final investment decision (FID) for the pipeline and a 2026 FID for the project’s LNG export components.
Preliminary commercial agreements have been secured for more than half of Alaska LNG’s available third-party LNG offtake capacity. This includes contracts with Taiwan’s CPC and Thailand’s PTT , with negotiations underway to make these deals binding. Additionally, Glenfarne said it is in discussions with potential customers for LNG volumes that are larger than the project’s total capacity.