Thailand's PTT secures major LNG deal with Glenfarne's Alaska project
Thai state energy company PTT, has struck a significant agreement to purchase 2 million tonnes per annum of liquefied natural gas from Glenfarne's Alaska LNG project over a 20-year period, marking a substantial boost for both Thailand's energy security and the ambitious American gas venture.
The cooperation agreement, witnessed by Thailand's Permanent Secretary of Energy Dr Prasert Sinsukprasert and US Ambassador Robert Godec, represents a strategic move by Southeast Asia's second-largest economy to diversify its energy supplies amid rising electricity demand and declining domestic gas production.
PTT, Thailand's largest publicly traded company with a BBB+ investment grade credit rating, is continuing its evaluation of the Alaska LNG project as part of broader efforts to expand its LNG business and strengthen national energy security.
The $44 billion Alaska LNG project, championed by US President Donald Trump, is designed to deliver approximately 3.5 billion cubic feet of gas daily from Alaska's North Slope fields, primarily targeting international markets. The ambitious venture requires construction of an 800-mile pipeline to transport gas from northern Alaska to Asian customers, though final investment decisions remain pending.
Adam Prestidge, President of Glenfarne Alaska LNG, highlighted that the deal brings Alaska LNG to 50% capacity reservation with investment-grade counterparties. "Recent events in the Middle East once again underscore the significant need for Alaska LNG that comes from a secure, stable, and abundant source without traversing through potentially contested waters," noted Brendan Duval, Glenfarne's CEO and founder.
The Alaska LNG project consists of an 807-mile pipeline capable of transporting natural gas to meet both Alaska's domestic requirements and supply the full 20 million tonnes per annum export facility. The pipeline will be constructed in two phases, with the first delivering gas approximately 765 miles from the North Slope to the Anchorage region, followed by a second phase adding compression equipment and pipeline extensions to the export facility in Nikiski.
Glenfarne Group, the majority owner and lead developer, is actively engaged with pipeline contractors and partnering with Worley to complete final engineering work ahead of a final investment decision. The company operates a broader LNG portfolio including Texas LNG, which has announced full capacity sales, and late-stage project Magnolia LNG in Louisiana.
Thailand has been steadily increasing LNG imports in recent years, with Finance Minister Pichai Chunhavajira indicating plans to import more US LNG over the next five years. The Alaska project's proximity to Asian markets and competitive pricing compared to US Gulf Coast exports make it particularly attractive for Thai energy planners seeking reliable, cost-effective supplies.
