JERA Considers Significant LNG Offtake from Alaska Project

Japan's foremost energy supplier, JERA, shows strong interest in acquiring liquefied natural gas (LNG) from the Alaska LNG project, backed by developer Glenfarne. The potential deal, worth approximately $44 billion, remains in the negotiation phase as stakeholders aim for binding agreements.

A recent agreement—a letter of intent—between JERA and Glenfarne outlines plans for JERA to buy 1 million tons of LNG annually over two decades. While allowing for in-depth evaluations and collaboration, this agreement marks JERA's strategic maneuvering to understand and possibly commit to the project's detailed framework.

Despite the project's promise, several Japanese officials express concerns over competitive pricing. Nevertheless, the Japanese government hires consultancy Wood Mackenzie to assess the project's feasibility, indicating potential deeper involvement in enhancing Alaska's energy export avenues.