TotalEnergies has signed a 20-year agreement to purchase two million tonnes per year (MTPA) of liquified natural gas (LNG) from the Alaska LNG project.
The French oil major signed the agreement with Glenfarne Group, the majority owner and developer of the Alaska LNG project.
The future Alaska LNG project is the only federally authorised LNG export terminal on the US Pacific coast. The project is expected to have a total capacity of 20 MTPA, with direct access to Asia, the world’s largest LNG market.
Patrick Pouyanné CEO of TotalEnergies said: “The Alaska LNG project is indeed very well geographically positioned to better serve our Asian customers.
“It also illustrates TotalEnergies’ ambition to consolidate its position as a leading buyer of US LNG, while diversifying its supply sources.”
Glenfarne plans to contract 80 per cent, or 16 MTPA, of Alaska LNG’s 20 MTPA volume to finance the project and now has 13 MTPA accounted for with long-term contracts with several firms.
Glenfarne is developing the project in two phases, with phase one comprising of a domestic pipeline to deliver natural gas to Alaskans. Phase two will add the infrastructure to export LNG.
Glenfarne CEO Brendan Duval said: “Alaska LNG offers a unique Pacific orientation that complements TotalEnergies’ supply strategy and provides Asian customers with direct access to U.S. gas. We are proud to add another partner of their calibre to the project.”
Alaska LNG consists of 1,300 kilometre 42-inch pipeline to deliver natural gas from Alaska’s North Slope to meet Alaska’s domestic needs and produce 20 MTPA of LNG for export.
Glenfarne owns 75 per cent of Alaska LNG and the State of Alaska, through the Alaska Gasline Development Corporation, owns 25 per cent.
