Glenfarne’s Alaska LNG secures supply deal with ConocoPhillips

Alaska LNG has inked a 30-year natural gas supply deal with US energy giant ConocoPhillips, lead developer Glenfarne announced on May 18.

Glenfarne added that the deal means Alaska LNG now has contracts in place for enough volumes to allow for a final investment decision (FID) to be made on Phase One of the project.

New York-headquartered Glenfarne also has deals with North Slope producers ExxonMobil, Hilcorp Alaska, and Great Bear Pantheon, which is a wholly owned subsidiary of Pantheon Resources.

Phase One of Alaska LNG comprises of a 42-inch pipeline stretching 739 miles, which will transport natural gas to Alaskan consumers amid expected supply shortfalls due to declining production at Cook Inlet.

“Our participation in Alaska LNG supports reliable access to responsibly produced North Slope natural gas while complementing our ongoing investment in Alaska,” ConocoPhillips Alaska President Erec Isaacson said in a statement.

Phase Two of the project would see the addition of an LNG export terminal in Nikiski, which would be ideally located to export cargoes of the super-chilled fuel to Asia and avoiding shipping through the Panama Canal, a key chokepoint for US Gulf Coast LNG producers.

Amid threats of tariffs by US President Donald Trump over trade imbalances, a number of Asian countries have including South Korea, Japan, Taiwan, and the Philippines have all expressed interest in LNG supply contracts with Alaska LNG.

If Phase Two gets the green light, Alaska LNG would boast a production capacity of 20 mn tonnes per year (tpy).

In March, French supermajor TotalEnergies signed a letter of intent for a 20-year LNG offtake agreement with Alaska LNG that would see the Paris-based company purchase 2 mn tpy of LNG, dependent on the project receiving a positive FID.

Glenfarne owns a 75% stake in the project, while the state of Alaska holds the remaining 25% interest through the Alaska Gasline Development Corporation (AGDC).