POSCO International Corp. signed a preliminary agreement with Glenfarne Group to evaluate participation in Alaska’s $45 billion liquefied natural gas project, marking the first Korean company to formally explore involvement in the troubled venture.
The trading arm of South Korea’s largest steelmaker would purchase 1 million tons of LNG annually for two decades under the non-binding letter of intent signed Wednesday at the Gastech conference in Milan. The agreement also outlines potential steel supply for the project’s 807-mile pipeline, connecting Alaska’s North Slope gas reserves to an export terminal in Nikiski.
POSCO International emphasized the preliminary nature of the agreement, stating participation “will be determined through internal decision-making processes, including board approval, once we are confident in its business feasibility and profitability” according to company officials.
The Alaska LNG project carries significant baggage. Initially proposed over a decade ago, the venture stalled after ExxonMobil and other major US energy companies withdrew due to high investment costs and risks. The project regained momentum in 2025 after Trump signed an executive order supporting the plan shortly after taking office.
The United States has been pressing Korea and Japan to join the Alaska LNG project via multiple channels, including bilateral trade negotiations. During August’s US-Korea summit, Trump indicated both countries plan to invest in the development, adding political weight to commercial discussions.
POSCO’s cautious approach contrasts with developer Glenfarne’s promotional messaging. Glenfarne CEO Brendan Duval claimed POSCO’s participation “adds tremendous momentum” to the project, though the company targets a final investment decision by year-end with limited binding commitments secured.
The tentative agreements with POSCO and Japan’s JERA, also for 1 million tons annually, follow similar non-binding deals with Taiwan’s CPC Corporation and Thailand’s PTT. Together with Glenfarne’s potential off-take, these arrangements would account for 12 million of the pipeline’s planned 20 million ton capacity.
The project’s commercial viability remains questionable. Wood Mackenzie’s 2016 assessment was dubious about the project’s viability, though a 2022 report commissioned by Alaska Gasline Development Corporation was more favorable. Industry observers note the persistent challenge of making Alaska LNG competitive with lower-cost alternatives from Qatar and Australia.
For POSCO International, the Alaska venture represents potential diversification from traditional trading operations, though final terms including pricing and volumes remain undisclosed under confidentiality agreements.
