JERA Signs 20-Year LNG Deal From $44B Alaska Project

The Alaska LNG project, majority owned by Glenfarne and backed by President Donald Trump, has taken a significant step forward with Japan’s largest power generation company, JERA, signing a letter of intent to purchase 1 million tons of liquefied natural gas annually over 20 years. This $44 billion project aims to transport natural gas from Alaska’s North Slope via a pipeline to an export facility, targeting stable LNG supply to Asia-Pacific markets, including Japan, Taiwan, and Thailand. While the agreement strengthens energy security for both the U.S. and Japan, concerns remain among some Japanese officials about the project's high costs potentially limiting its competitiveness. The Japanese government has engaged consultancy Wood Mackenzie to assess the project’s feasibility, reflecting potential deeper involvement. Glenfarne has accelerated commercial progress since acquiring a 75% stake earlier in 2025 and is negotiating with additional buyers beyond the project’s capacity, highlighting strong demand for U.S. LNG. The deal underscores Japan’s strategic efforts to diversify LNG sources and secure flexible supplies amid global energy security tensions.