Japanese Electric Company Signs Tentative Agreement for gas from Alaska LNG Project
ANCHORAGE, AK – September 9, 2025 – A Japanese electric company has signed a preliminary agreement to purchase liquefied natural gas (LNG) from the proposed Alaska LNG (AKLNG) project, marking a significant step forward for the stalled pipeline venture.The agreement, announced today, secures a potential offtake commitment for approximately 2 million tons per year of the pipeline’s 20-million-ton annual capacity.
Glenfarne, the project’s lead developer, stated the agreement brings its secured commitments to over half of the available third-party LNG offtake capacity. Glenfarne itself anticipates taking another 2 million tons per year, a share possibly open to further third-party agreements.
The AKLNG project aims to transport natural gas from Alaska’s North Slope to a liquefaction facility in Nikiski on the Kenai Peninsula, for export to Asian markets. The project has faced numerous hurdles over the years, including financing challenges adn fluctuating global gas prices.
Support for the pipeline has been publicly voiced by President Donald Trump, who has suggested the possibility of federal loans from the U.S. Department of energy to help finance the project. A recent trade deal between the U.S. and Japan raised the prospect of Japanese government investment, though this remains unconfirmed. U.S. Commerce Secretary Howard Lutnick claimed last week the trade deal requires Japan to invest $550 billion in U.S. projects, citing the Alaska gas pipeline as a potential recipient. However,Japanese officials have expressed skepticism regarding this claim,and reports from Japan have questioned the figure.
Further complicating matters, Japanese Prime Minister Shigeru Ishiba resigned on Sunday, creating uncertainty around ongoing trade negotiations. Despite this, Japan has reportedly hired energy consulting firm Wood Mackenzie - which previously worked with the state on earlier versions of the project – to assess the AKLNG project’s feasibility, as reported by Reuters this week.
South Korea, another potential major buyer of Alaskan gas, has yet to announce its position on participating in the project.
The agreement was originally reported by the Alaska Beacon, an autonomous, nonpartisan news institution covering Alaska state government.
