JERA Co. has signed a Letter of Intent (LOI) with Glenfarne to advance discussions about liquefied natural gas (LNG) offtake from the Alaska LNG Project.
In June, JERA announced approximately 5.5 MTPA of LNG offtake from the U.S. Gulf Coast which allows flexible access to the global LNG market, including Japan, at a competitive cost.
According to the company, Alaska LNG offers unique advantages of abundant gas resources which are otherwise stranded and proximity to the growing LNG markets in Asia, which could contribute to the regional LNG supply security.
The LOI will facilitate information exchange and collaboration with Glenfarne as JERA prudently assesses the project’s timelines and economics.
“We value the Alaska LNG Project for its prospects to provide reliable, stable, and competitive LNG supply. This LOI provides a platform for continued dialogue with Glenfarne, and as more details become available, we look forward to deepening our understanding of the project,” said Ryosuke Tsugaru, JERA’s Chief Low Carbon Fuel Officer.
“Our agreement with JERA, one of the leading LNG companies in the world, follows months of committed discussions on both sides to open a new and diversified energy supply that strengthens energy security and spurs long-term economic growth for both Alaska and Japan. I am grateful for our partnership and collaboration as Glenfarne builds on this momentum with commercial parties across the Pacific region,” added Brendan Duval, Glenfarne Chief Executive Officer and Founder.