GLNG: Alaska LNG faces hurdle after Japan and South Korea reject proposed project

The US’s proposed Alaska LNG project has hit a major road bump with Japan and South Korea declaring they will neither invest in or sign contracts to purchase LNG from the project, The Wall Street Journal reported on July 25.

The $44bn proposed megaproject would see an 807-mile (1,299-km) pipeline being constructed to transport natural gas from the north of the state to its south before being shipped predominately to Asian buyers.

Momentum for the proposed project had been building, with the Energy Department granting approval in April. Initial timelines had sought for the project to start shipping the super-chilled fuel by 2030 and under federal law the project could have access to over $30bn worth of loan guarantees.