Japan Secures Major LNG Deal to Boost Energy Security

In a significant move to enhance energy security, energy developer Glenfarne has struck a 20-year deal to supply Japan's largest power generator, JERA, with one million metric tons of liquefied natural gas (LNG) annually. This agreement marks progress for the costly $44 billion Alaska LNG project.

Glenfarne, which assumed a 75% stake in the Alaska LNG project earlier this year, plans to make a final investment decision for the pipeline by late 2025 and for the export components by 2026. Already, Glenfarne has secured preliminary agreements covering over half of the project's third-party offtake capacity, including deals involving Taiwan's CPC and Thailand's PTT.

The deal underscores Japan's urgent need for stable LNG supplies amid rising electricity demand driven by a boom in data centers. While the agreement marks a forward step for the long-discussed export project, concerns remain about the project's competitive pricing, prompting Japan to consult Wood Mackenzie for a detailed review.