Alaska LNG has been one of the industry’s longest-running “maybe someday” projects. The Iran War may have just given it a greenlight.
Glenfarne, the lead developer, has been trying to lock down binding offtake deals for 80% of the project’s 20 MTPA capacity before making a final investment decision.
It has commitments for 13 MTPA.
It needs 3 more.
Asian buyers are feeling the pain from the closure of the Strait of Hormuz and are searching for reliable supply.
This urgency may be enough to secure the commitments necessary for the project to proceed.
Large-scale energy producers and consumers all recognized the possibility of the Strait of Hormuz being shut down at some point.
But planning shifts when hypothetical risks come to fruition.
Three weeks into the conflict, and a project two decades in the making becomes viable.
That’s how quickly energy security math can change.
