Glenfarne‘s Alaska LNG unit has finalized a significant 20-year agreement. This deal will supply liquefied natural gas (LNG) to South Korean trading firm POSCO International. The commitment marks a key step for both companies.
The Supply Agreement
Glenfarne will provide 1 million tonnes per annum (mtpa) of LNG. This supply originates from its planned Alaska export project. The long-term contract ensures a steady energy source for POSCO.
Volume and Duration
The agreement specifies a substantial volume. Glenfarne commits to delivering one million tonnes of LNG annually. This supply will continue for a period of two decades. Such long-term contracts provide stability in the global energy market.
Origin of Supply
The LNG will come directly from Glenfarne’s planned Alaska export project. This project represents a major investment in energy infrastructure. It aims to leverage Alaska’s natural gas reserves.
Progression of the Deal
This final agreement follows earlier discussions. The companies initially reached a preliminary understanding in September. Finalizing the terms solidifies their long-term partnership.
Market Implications
The finalized deal underscores the growing global demand for LNG. Energy security remains a priority for many nations. Such agreements help secure future energy supplies. They also support the development of new export infrastructure.
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