Wedoany.com Report-Dec.5, Glenfarne's Alaska LNG unit announced on Thursday that it has signed a binding 20-year agreement to supply 1 million tonnes per annum (mtpa) of liquefied natural gas to South Korea's POSCO International, starting from the planned Alaska LNG export project. The deal converts a preliminary accord reached in September into a firm commitments.

The agreement includes a capital contribution from POSCO International of an undisclosed amount ahead of the project's final investment decision. POSCO will also supply a substantial share of the steel required for the 807-mile (1,298 km) high-pressure natural gas pipeline that will transport gas from Alaska's North Slope fields to a liquefaction and export terminal in south-central Alaska.

Since taking majority ownership and development leadership of the Alaska LNG project in March, Glenfarne has now secured non-binding and binding offtake commitments totalling 11 mtpa from buyers in Japan, South Korea, Taiwan and Thailand.

Global interest in long-term LNG contracts has remained strong in recent years as Asian and European importers seek to diversify and secure supplies following disruptions to traditional gas trade flows that began in 2022.

Glenfarne continues to target a final investment decision on the multi-billion-dollar Alaska LNG project before the end of 2025. The facility, once operational, would mark the first large-scale LNG export terminal in Alaska and provide access to the state’s vast North Slope natural gas reserves for international markets.

The binding contract with POSCO International represents a further step toward commercial viability for the long-proposed project, which has been under discussion for more than a decade.