POSCO Worldwide has finalized its participation within the U.S. Alaska liquefied pure gasoline (LNG) improvement venture price 64 trillion gained. The corporate has kicked off full-scale improvement by concurrently buying 1 million tons of Alaska-sourced LNG yearly whereas additionally enterprise capital funding.
A senior POSCO Worldwide official mentioned on Jan. 14, “We plan to signal a remaining funding resolution (FID) contract for the U.S. Alaska LNG venture inside January-February.” FID is a stage the place all conditional contracts acquire authorized impact, in contrast to the earlier evaluation stage. Earlier, POSCO Worldwide signed a preliminary contract with Glenburn for LNG introduction in September final yr, adopted by a heads of settlement (HOA) containing agreements on some contract issues in December. Signing the FID contract means POSCO Worldwide has accomplished its enterprise feasibility evaluation and selected remaining venture participation.
Moreover, POSCO Worldwide plans to undertake capital funding, together with fairness acquisition, within the venture. Nevertheless, it didn’t disclose the precise scale. The official mentioned, “This half falls underneath a non-disclosure settlement (NDA), making it tough to disclose, however we can disclose particulars when the chance arises.”
The U.S. Alaska LNG venture is a venture to develop gasoline fields within the North Slope space of northern Alaska. It requires putting in pipelines throughout roughly 1,300 km working north-south by Alaska and establishing infrastructure, together with liquefaction terminals, with preliminary estimates projecting capital funding of over $45 billion (roughly 64 trillion gained).
POSCO Worldwide agreed to buy 1 million tons of LNG yearly underneath free on board (FOB) circumstances for 20 years. FOB is a situation the place the vendor bears the fee and duty of loading cargo on the delivery port. This represents 2.2% of Korea’s 2024 LNG imports of 46.32 million tons. Underneath this contract, POSCO will provide metal supplies in giant portions wanted for establishing 42-inch high-pressure pure gasoline pipelines for the set up of 1,300 km-scale gasoline pipes required for the Alaska LNG venture.
