"Many Inquiries from Asia, Including India and Thailand"
Visited South Korea and Japan to Meet Political and Business Leaders
Considering a Loose Joint Venture Structure
As U.S. President Donald Trump pressures Asian countries such as South Korea and Japan to participate in the Alaska liquefied natural gas (LNG) project, the main U.S. developer of the Alaska LNG project has announced that its goal is to begin full commercial operations in 2031.
Brendan Duval, CEO of Glenfarne Group, stated in an interview with CNBC on the 20th (local time) that the Alaska LNG project has already received approval.
The Alaska LNG project consists of a gas pipeline approximately 1,287 kilometers long connecting the North Slope to southern Cook Inlet (a bay of the Gulf of Alaska), a gas processing plant, and a gas liquefaction plant. The total cost is estimated at $42 billion (about 59 trillion won).
CEO Duval said that regarding the first phase of the project, which involves a pipeline connecting the North Slope and Anchorage, a final investment decision is expected within the next six to twelve months. He also projected that construction of the LNG plant will begin by the end of next year, and that the entire project will be completed within four and a half years, with the goal of starting full commercial operations in 2031. The project aims to produce 20 million tons of LNG annually. According to data from commodity information provider Kpler, this volume is equivalent to 23% of the United States' LNG exports last year.
Last month, he visited South Korea and Japan with Alaska Governor Mike Dunleavy to meet with political and business leaders. He said that South Korean and Japanese companies inquired whether their national development banks could help finance the project. Regarding Taiwan, he reported that the state-owned oil company CPC Corporation signed a letter of intent last month to purchase 6 million tons of gas and also proposed a direct investment in the Alaska LNG project. CEO Duval added, "There have been many inquiries from India recently," and that other Asian countries, including Thailand, are also showing interest.
He also mentioned that the project could take the form of a loose joint venture, in which Asian countries sign large-scale LNG contracts. South Korea, Japan, and Taiwan do not necessarily need to hold equity stakes, but that possibility remains open. Glenfarne holds 75% of the Alaska LNG project, while the Alaska Gasline Development Corporation (AGDC) holds 25%.
However, some continue to express doubts about the business feasibility of the project. According to CNBC, Bob McNally, president of consulting firm Rapidan Energy, pointed out that the Trump administration is pressuring Japan, South Korea, and Taiwan to invest in Alaska LNG.
McNally, who served as an energy advisor to former U.S. President George W. Bush, said that while Japan wants to appease the Trump administration and diversify its LNG supply routes, it may hesitate to invest in Alaska LNG due to the project's cost, complexity, and risks.
The U.S. political calendar is also a variable. If the Democratic candidate wins the 2028 presidential election, the project will inevitably be affected. Alex Munton, head of global gas and LNG research at Rapidan Energy, noted that for Asian countries, existing LNG supply routes from the Middle East are more attractive, and that costs could increase during the course of the project.
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