A view of Alaska (Image courtesy of Pixabay/CCL)
SEOUL, Dec. 5 (Korea Bizwire) — POSCO International Corp. has finalized a strategic partnership agreement with Glenfarne Alaska LNG for the development of an Alaska liquefied natural gas (LNG) project, becoming the first South Korean company to officially participate in the major U.S. energy project backed by President Donald Trump, the American company said Friday.
POSCO International, a major gas importer in South Korea, signed definitive agreements for the partnership with Glenfarne, the lead private developer of the Alaska project, in Washington on Monday (U.S. time), according to Glenfarne.
Glenfarne said the agreement includes terms for POSCO Group, a major steel producer, to supply a significant portion of the steel required for Alaska’s 1,300-kilometer pressurized natural gas pipeline.
The Korean company also signed a 20-year heads of agreement (HOA) to purchase 1 million tons of LNG per year on a free-on-board basis, which marks the first HOA for Alaskan LNG, Glenfarne added.
POSCO International also agreed to make capital investment in the Alaska LNG project before making a final investment decision. The value of the envisioned investment was not disclosed.
“POSCO Group is one of the world’s leading steel and energy companies, and their commitment to Alaska LNG reflects the high degree of support in Asia and across the Pacific for unlocking this valuable source of abundant, competitive LNG,” Glenfarne’s Chief Executive Officer and founder Brendan Duval said in a press release.
The Trump administration has been pushing South Korea, Japan and other Asian countries to invest in the Alaska LNG project, which aims to build a 1,300-kilometer pipeline connecting the North Slope, a massive, proven reserve of natural gas, to southern Alaska for export mainly to Asian countries.
The Korean government agreed to purchase US$100 billion worth of American energy products as part of a finalized trade deal with the U.S., under which the Trump administration lowered the reciprocal tariff rate for South Korea to 15 percent from 25 percent. The U.S. administration also cut tariffs on Korean cars to 15 percent from 25 percent.
(Yonhap)
