Alaska LNG Needs More Offtake Commitments Before Final Investment Decision, CEO Says

Glenfarne CEO says company needs to secure additional 3 million metric tons of annual LNG sales to proceed with $44 billion project.

Mar. 16, 2026 at 1:50am

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Energy developer Glenfarne needs to secure offtake agreements for a further 3 million metric tons of liquefied natural gas before making a final investment decision on the $44 billion Alaska LNG project, its chief executive said on Sunday. The lead developer of the Alaska project is in talks with two potential buyers to add the remaining volumes on top of 13 million tons of annual sales preliminarily agreed so far.

Why it matters

The Alaska LNG project would open direct access for U.S.-produced LNG to Asian markets without having to pass through the Panama Canal or around the Horn of Africa, reducing transit time and costs. This would dramatically shorten transit times and increase energy security for Asian buyers.

The details

Glenfarne needs 80% of the LNG plant's targeted annual capacity of 20 million tons secured under offtake deals before proceeding with a final investment decision. The project combines two phases - a pipeline and an LNG export facility - aimed mainly at supplying Asian markets. Phase One is expected to deliver natural gas about 765 miles from the North Slope to the Anchorage region, while Phase Two will add nearly 42 miles of pipeline under the Cook Inlet to the Alaska LNG export facility in Nikiski. Glenfarne expects to start delivering gas via the pipeline portion of the project in 2029.

  • Glenfarne expects to start delivering gas via the pipeline portion of the project in 2029.

The players

Glenfarne

The energy developer and lead developer of the Alaska LNG project.

Brendan Duval

The CEO of Glenfarne.

JERA

A major Japanese LNG buyer that has agreed to preliminary offtake agreements for the Alaska LNG project.

Tokyo Gas

A major Japanese LNG buyer that has agreed to preliminary offtake agreements for the Alaska LNG project.

Doug Burgum

The U.S. Interior Secretary who spoke about the project's benefits during the conference.

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What they’re saying

“'(The) last 3 million tons will move very quickly'”

— Brendan Duval, CEO, Glenfarne

“Alaska, from a trade standpoint, is about one-third the distance to Japan or Korea than it is to the Middle East. This dramatically shortens transit times, but also dramatically increases energy security.”

— Doug Burgum, U.S. Interior Secretary

What’s next

Glenfarne is in talks with two potential buyers to add the remaining 3 million metric tons of annual LNG sales needed to reach the 80% offtake threshold for a final investment decision on the $44 billion Alaska LNG project.

The takeaway

The Alaska LNG project has the potential to significantly shorten transit times and increase energy security for Asian LNG buyers by providing direct access to U.S.-produced natural gas without having to go through the Panama Canal or around the Horn of Africa. However, the project still needs to secure additional offtake commitments before the developer can make a final investment decision.