Middle East conflict rekindles interest in Alaska LNG

THE ongoing war in the Middle East, which has disrupted roughly 20 percent of global LNG supply, has reignited interest in the Alaska LNG export project as Asian buyers rush to secure costly spot cargoes to meet demand.

Executives from Glenfarne Group, the majority owner and developer of the Alaska LNG project, said the company is working to convert preliminary supply deals into binding offtake agreements. Speaking to Reuters during an energy conference in Tokyo on Monday, company officials noted that they hope to move the project toward final investment decisions between late 2026 and early 2027.

According to President of Glenfarne Alaska LNG, Adam Prestidge, the geopolitical turmoil has heightened buyer interest in long-term supply arrangements. He explained that the uncertainty surrounding Middle Eastern energy infrastructure has encouraged prospective customers to turn earlier discussions into durable LNG contracts.

Valued at about $44 billion, the Alaska LNG development has gained renewed traction amid the global supply shock. The project, which is strongly backed over the past year by the administration of Donald Trump, had initially received a lukewarm response from Asian LNG buyers and investors. However, the latest geopolitical tensions have strengthened the case for supply diversification, making the project more attractive.

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The Alaska LNG initiative aims to supply natural gas from Alaska’s North Slope to local consumers while exporting liquefied natural gas to U.S. allies across the Pacific. Central to the plan is an 800-mile pipeline that will carry gas from the North Slope production areas to south-central Alaska, where the LNG export terminal will be located. The system will also include several gas interconnection points designed to meet domestic demand within the state.

Glenfarne now expects to take a final investment decision on the pipeline in 2026, later than its earlier target of late 2025. The export terminal could reach its own final investment decision in early 2027, Prestidge said.

To advance the project, the developer is focusing on securing binding supply agreements and arranging financing, processes that Prestidge indicated are already progressing.

Just before the Middle East conflict escalated last month, Glenfarne signed a preliminary 20-year LNG supply agreement with TotalEnergies. Under the deal, the French energy major, one of the world’s leading LNG traders, would purchase 2 million tonnes of LNG annually from the Alaska LNG project.