Glenfarne and POSCO International Forge Strategic LNG Partnership Amid Regulatory and Financial Risks

The partnership framework and regulatory baseline take shape as the project moves toward a final investment decision. The massive 765-mile pipeline represents a significant engineering challenge that could expose the project to cost overruns and construction delays. Glenfarne and POSCO International finalized a strategic partnership for the Alaska LNG project, according to the partnership announcement. as reported by business wire. The project received (FERC) authorization on May 21, , after completing the (NEPA) review according to Alaska LNG. As a federally authorized LNG project, the Alaska LNG initiative falls under coverage, an expedited review process for large-scale energy infrastructure. Regulatory approval is a milestone, but the project still needs to secure financing and manage construction risks. The partnership's steel supply and capital investment support are pre-final investment decision (pre-FID) contingencies, meaning they depend on the final investment decision being made.

Regulatory Compliance Risks

Regulatory hurdles remain a significant financial risk for major infrastructure projects like Alaska LNG. The recent reactivation of FAST-41 review processes for permits in 2025 directly impacts the project's timeline and cost structure. While FERC has completed 17 of 20 required environmental review processes, the renewed scrutiny under FAST-41 creates uncertainty around final permit issuance.

Delays in permit approval translate directly into higher project costs. . , exposing them to potential lawsuits from environmental groups if permits are eventually issued but deemed insufficient. This compliance burden creates a prolonged period of cash drain without revenue generation, testing the financial resilience of the consortium.

The December 2025 target for final review completion remains critical; missing this date would further escalate costs and intensify legal exposure, making the project's original 2020 approval window appear distant and optimistic.

Oftake Agreements and Revenue Uncertainty

Glenfarne Alaska LNG has locked in 1 MTPA with Tokyo Gas, according to Glenfarne's announcement. , . , .

Revenue will come from fixed‑price contracts, . , . , .

Cash Flow Pressures and Critical Milestones

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