Alaska LNG promises gas cheaper to Asia and Europe than on the American stock exchange

• Posted in OilGas
• on June 10, 2025
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The multibillion-dollar LNG project in Alaska is trying to attract investors and declares that the cost of gas will be lower than on the American Henry Hub exchange. Until recently, investors were in no hurry to visit Alaska, but Donald Trump’s threats to impose import duties forced companies in major Asian countries to reconsider their attitude.

The American Glenfarne Alaska LNG, which is the main shareholder of Alaska LNG, announced the completion of the first round of the strategic partner selection process, which was attended by more than 50 companies from the USA, Japan, South Korea, Taiwan, Thailand, India and the European Union.

“These potential partners have officially expressed interest in a contract value of more than $115 billion for various partnerships, including the supply of equipment and materials, services, investments and client agreements,” Glenfarne Alaska LNG reports.

The company did not specify what amounts were offered as investments or for LNG purchases.

At the same time, they noted that Alaska LNG’s economic performance allows it to supply LNG to Asia at prices that are lower than prices on the American Henry Hub exchange. Traditional contracts for the supply of American LNG assume that the cost of LNG is based on the following formula: the price of gas at Henry Hub plus 10-15% and the cost of liquefaction.

Alaska LNG expects to produce 20 million tons of LNG (about 28 billion cubic meters of gas) per year. At the same time, to implement the project, it is necessary to build not only a terminal, but also an 800-mile gas pipeline, which increases the cost of the project to $ 40 billion.
Until recently, investors and consumers were not particularly interested in the project and it did not have a single agreement. The situation changed after Donald Trump occupied the White House and unleashed a trade war. Due to the threat of import duties, many Asian countries have changed their attitude to the project.

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