POSCO International has reportedly raised its stake in Glenfarne Alaska Partners, the special purpose entity developing the Alaska LNG (Liquefied Natural Gas) project, from 1.17% at the end of last year to about 3.5% as of the end of the second quarter this year. Alongside this, the possibility of steel pipe supply by affiliate POSCO is also reportedly being discussed.
The Alaska LNG project is a large-scale gas field development, pipeline, and LNG export terminal project being advanced by Alaska Gasline Development Corporation (AGDC) and U.S. energy company Glenfarne. POSCO International holds a stake in the project’s special purpose entity, and under a Heads of Agreement (HOA), is reportedly set to purchase 1 million tons of LNG annually for 20 years.
POSCO International’s cumulative investment is $35 million (about KRW 48.5 billion), with its stake rising from 1.17% to about 3.5%. The volume of steel pipe that affiliate POSCO could supply is discussed at approximately 300,000 tons, reportedly for use in about 1,300 km of 42-inch high-pressure gas pipeline and the LNG terminal (though this volume is not a confirmed order). The project’s total cost, initially cited at $44 billion, is now reportedly being discussed at around $50 billion.
This stake increase is reportedly part of a POSCO Group strategy to secure both LNG purchase rights and potential domestic steel equipment supply opportunities together.
Cases where a company that has invested in a large overseas LNG project links that stake to equipment supply opportunities for its domestic steel and materials industry are seen as a reference point for how domestic industry more broadly might participate in overseas LNG projects.
Attention is on the timing of the Alaska LNG project’s Final Investment Decision (FID), and whether POSCO’s discussed steel pipe supply volume translates into a confirmed order.