POSCO, a South Korean company, has formed a strategic partnership with Glenfarne Alaska LNG to help develop Alaska’s liquefied natural gas (LNG) project. This marks the first time a South Korean firm has officially joined this major US energy initiative.
The Alaska LNG project is supported by US President Donald Trump. Glenfarne announced on Thursday that POSCO’s involvement will contribute to the development and success of this vital energy venture.
The agreement was signed at the Gastech conference in Milan, Italy. POSCO, a major gas importer from South Korea, has been named a partner with Glenfarne, the main private developer of the project.
The deal still needs final approval from the boards of both companies.
The agreement includes plans for POSCO to provide a large part of the steel needed for a high-pressure pipeline.
The pipeline will stretch 807 miles (about 1,300 kilometers) from south-central Alaska to an LNG export terminal in the southern part of the state.
POSCO also signed a 20-year agreement to buy 1 million tons of LNG every year on a free-on-board basis. This is the first agreement of its kind for Alaskan LNG, according to Glenfarne.
The Alaska LNG project, supported by the Trump administration, is looking for investment from Asian countries like South Korea and Japan to export gas from Alaska to Asia.
In July, South Korea agreed to buy $100 billion worth of energy products from the US.
This deal was part of a larger $350 billion investment package that also aimed to reduce tariffs on South Korean imports to the US from 25% to 15%.
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