Phootó: In the wake of Kielaitis / Shutterstock
Construction can start as early as next year
The project is essentially already close to getting the green signal, if this is received, construction of the pipeline could begin in 2026. According to Oilprice, construction of the liquefaction plant will begin two years after that, i.e. expectedly in 2028.
The question arises, where will this abundance of natural gas go? Part of it will certainly be utilized by local utilities, this quantity will not be liquefied, of course, but the really exciting question is who will buy the LNG from the Alaskan terminal.
According to Glenfarne, more than 50 companies have already expressed interest in supply or construction contracts worth a total of $115 billion.
This in itself shows the importance of the project, even if the exact numbers are not known about the value of delivery contracts that Glenfarne and its partners will fulfill. The company revealed that
- from the United States,
- from Japan
- from South Korea,
- from Taiwan,
- From India, Thailand, and
- they also received interest from the European Union.
Potentially, there is also a – minimal – chance that in the future, molecules from Alaskan natural gas will reach the EU, and even into the Hungarian pipeline system, although the reality of this is small due to the geographical distance. Reuters understands that more than 60 percent of annual capacity at the Alaska LNG project has already been pre-committed on a commercial basis, although the agreements are not binding. Mainly Japanese and South Korean companies are involved in them.
The giant Alaska LNG project clearly needs a supportive federal and state political climate.
On several occasions, Donald Trump has encouraged American producers to increase production intensity and his allies to buy more American LNG (Hungary has also signed an agreement on this). But it is not only the top management in Washington that does this, but also other important politicians, thanks to which – as we just mentioned – Japan and South Korea are also seriously interested in US Alaskan LNG.
