JERA Signs Agreement to Purchase LNG from Alaska Pipeline Project

Japan's leading power company, JERA, announced on Thursday that it has entered into a letter of intent with Glenfarne, the U.S. developer behind the Alaska LNG pipeline project, to discuss the purchase of liquefied natural gas (LNG). The agreement focuses on acquiring one million tonnes of LNG annually over a 20-year period from the $44 billion Alaska LNG initiative.

The pipeline, stretching approximately 1,300 kilometers (800 miles), aims to transport LNG to Asian markets, with U.S. President Donald Trump previously promoting its strategic significance. Despite its potential, the project faces numerous technical challenges and is not projected to commence operations before 2030.

This LNG procurement aligns with the recent Japan-US trade deal, wherein Tokyo committed to stable, long-term incremental energy purchases from the U.S., specifically highlighting interest in Alaskan LNG supplies.

Glenfarne anticipates making a final investment decision on the pipeline later this year and aims to confirm export commitments by 2026. U.S. Energy Secretary Chris Wright described the agreement as "another important step forward for the Alaska LNG project."

Japan, heavily reliant on Middle Eastern oil imports, views this collaboration as a strategic move to diversify its energy sources and enhance supply security. Japanese government spokesperson Yoshimasa Hayashi emphasized the benefits, stating, "An increase in supply of US-produced LNG, which is highly competitive, has the potential to diversify supply sources. This will broadly benefit our country by helping secure and stabilize the supply of necessary resources."