Tiehacker Mountain, Alaska. Source: Flickr

One day after announcing a deal with Japan’s largest electrical producer, the lead developer of the proposed trans-Alaska gas pipeline has revealed a second agreement, this time with POSCO International Corp. a South Korean steel manufacturer.

A spokesperson for Glenfarne, the firm advancing the pipeline project, declined to make the terms of the agreement available on Thursday.

Glenfarne released a statement saying that the agreement includes terms for POSCO to buy 1 million tons of liquefied natural gas per year from the pipeline, if built.

This agreement will include initial terms for POSCO to supply a significant portion of the steel required for Alaska LNG’s 807-mile, 42-inch pressurized natural gas pipeline, the statement said.

Glenfarne owns 75 per cent of AKLNG, as the proposed pipeline project is also known, which would transport liquified natural gas from Alaska’s North Slope to the Kenai Peninsula for sale and export. The remaining 25% of the project is held by the state-owned Alaska Gasline Development Corp. The two companies are pursuing the pipeline via a co-owned subsidiary, 8 Star Alaska.

Rex Cannon, co-president of 8 Star Alaska, said last month that the firm intends to make a final investment decision on the first phase of the project before the before the end of the year.

That first phase would consist of a pipeline for in-state gas customers. The second phase of the project includes a gas treatment facility and an export terminal on the Kenai Peninsula. A final investment decision on that aspect is expected in 2026.

Based on public announcements, 8 Star Alaska has not signed enough gas purchase agreements from North Slope producers to meet expected demand.

Previous proposed gas pipeline projects have failed in large part due to funding issues. Cannon said in August that 8 Star Alaska is pursuing federal loans from the Trump administration, and loans from outside investors in order to fund construction.

Gas purchase agreements like the ones announced this week are believed to be a key first step in showing the project is economical and worth investment.

The AKLNG pipeline is expected to have a final capacity of 20 million tons of natural gas per year. As of Thursday, Glenfarne has announced preliminary commitments from buyers for approximately 12 million tons per year.

Earlier this year, POSCO Holdings Inc., the parent company of POSCO International, said it was seeking to expand its liquefied natural gas businesses, partially in an effort to capitalize on President Donald Trump’s drive to boost U.S. exports.

Since taking office, Trump has repeatedly said that he sees the development of Alaska as a top priority.

Source: Alaska Beacon