Glenfarne Alaska LNG, LLC and Tokyo Gas Co., Ltd. have announced the signing of a Letter of Intent for offtake of one million tonnes per annum of liquefied natural gas from the Alaska LNG project, majority owned and developed by Glenfarne. Tokyo Gas, one of Japan’s largest and most established energy utilities, is recognised globally for leadership in LNG procurement and energy innovation.
The LOI adds commercial momentum to Glenfarne’s rapid progress developing the 20 MTPA project, the only federally authorised export terminal on the U.S. Pacific Coast. Since becoming lead developer of Alaska LNG in March 2025, Glenfarne has signed preliminary offtake agreements with leading LNG buyers in Japan, Korea, Taiwan, and Thailand including JERA, POSCO, CPC, and PTT, totalling 11 MTPA of the 16 MTPA Glenfarne expects to contract to reach financial close.
Brendan Duval, chief executive officer and founder of Glenfarne, stated that the agreement validates the strength of Alaska LNG’s commercial offering and the project’s importance as a strategically positioned supplier of affordable, clean LNG for U.S. Pacific allies. He noted that Tokyo Gas pioneered the LNG industry with their agreement to purchase LNG from Alaska fifty-five years ago and represents one of the most respected voices in the industry, welcoming their participation in Alaska LNG.
In addition to Glenfarne’s rapidly growing portfolio of Alaska LNG offtake partners, Worley is completing final engineering and cost validation for the project’s 807-mile pipeline.
Alaska LNG consists of a 42-inch diameter pipeline transporting natural gas from Alaska’s North Slope to meet Alaska’s domestic needs and produce 20 MTPA of LNG for export. Glenfarne is developing Alaska LNG in two financially independent phases to accelerate project execution. Phase One includes the domestic pipeline delivering natural gas approximately 765 miles from the North Slope to the Anchorage region. Phase Two will add the LNG terminal and related infrastructure, enabling export capability. The State of Alaska, through the Alaska Gasline Development Corporation, owns 25 percent of Alaska LNG.
The Tokyo Gas LOI represents significant validation given the company’s historical role in LNG industry development and its position as a major Japanese utility with extensive LNG procurement experience. Tokyo Gas was among the first companies to import LNG commercially, establishing business models and technical standards that shaped global LNG trade development.
The reference to Tokyo Gas’s agreement to purchase LNG from Alaska fifty-five years ago recalls proposals from the late 1960s and early 1970s for Alaska LNG exports to Japan, which did not proceed to development. The current Alaska LNG project represents renewed efforts to monetise North Slope natural gas resources through LNG exports to Asian markets.
Alaska’s geographic position provides shorter shipping distances to Asian markets compared to U.S. Gulf Coast LNG export facilities, potentially offering logistics cost advantages and supply security benefits through geographic diversification. The U.S. Pacific Coast location provides strategic value for Asian buyers seeking supply options beyond traditional sources.
Glenfarne’s accumulation of preliminary offtake agreements totalling 11 MTPA toward a 16 MTPA target for financial close indicates substantial progress in commercial structuring. The involvement of major Asian utilities and energy companies, including JERA, POSCO, CPC, PTT, and now Tokyo Gas, provides a credible demand foundation supporting project financing.
The phased development approach separating the domestic pipeline (Phase One) from LNG export infrastructure (Phase Two) as financially independent projects aims to reduce execution complexity and financing requirements for initial phases. The domestic pipeline addresses Alaska’s natural gas supply needs whilst establishing an infrastructure foundation for subsequent export capability addition.
The State of Alaska’s 25 percent ownership through Alaska Gasline Development Corporation reflects the state government’s strategic interest in monetising North Slope natural gas resources, providing both economic development and fiscal revenue opportunities. State participation provides regulatory alignment and political support alongside financial investment.
Worley’s completion of final engineering and cost validation addresses critical requirements for project financing, providing lenders and investors with detailed technical specifications and capital cost estimates supporting investment decisions. Engineering completion enables progression to equipment procurement and construction contracts.
Alaska LNG’s federal authorisation as the only Pacific Coast export terminal provides regulatory certainty, though the project still requires a final investment decision, construction execution, and navigation of Alaska’s challenging environmental and logistical conditions. The project’s substantial scale and remote location present execution challenges requiring experienced contractors and substantial capital resources.
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