POSCO tempers Alaska LNG deal hype after Glenfarne announcement
POSCO International has signed a partnership with Glenfarne Alaska LNG, the lead developer of the Alaska liquefied natural gas (LNG) project. Despite heightened expectations that it could become the first Korean company to join the $44 billion energy project, the trading firm is stressing that a final decision on its participation has yet to be made, in contrast to Glenfarne’s conclusive tone. Glenfarne announced on Thursday that it had inked a strategic partnership on the project’s development with the POSCO unit during Gastech, an energy conference in Milan, Italy, Wednesday (local time). Glenfarne said the agreement includes initial terms for POSCO to supply steel to construct the project’s massive 1,300-kilometer-long, 107-centimeter-wide pipeline, which will connect the state’s North Slope to southern Alaska for export. The terms also contain conditions for a 20-year heads of agreement (HOA) that POSCO will purchase 1 million tons of LNG offtake per year on a free on board (FOB) basis, the project’s first. Offtake refers to a long-term supply purchase agreement. The deal w
