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POSCO Partners With Glenfarne to Progress Alaska LNG Project

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Key Takeaways

  • POSCO and Glenfarne finalized a strategic partnership to develop the federally authorized Alaska LNG Project.
  • The partnership covers major steel supply for Alaska LNG's pipeline and a 20-year HOA for 1 MTPA of LNG.
  • POSCO added a pre-FID investment and noted regional support as Glenfarne advances its two-phase plan.

POSCO Holdings Inc.’s (PKX - Free Report) unit,POSCO International Corporation, and Glenfarne Alaska LNG, LLC have finalized a strategic partnership for the development of the Alaska LNG Project, the only federally authorized LNG export project on the U.S. Pacific Coast. The strategic alliance was commemorated in Washington, D.C.

The partnership includes supplying a significant portion of the steel required for Alaska LNG’s 807-mile, 42-inch natural gas pipeline. The companies also entered into a 20-year Heads of Agreement (HOA) for 1 million tons per annum of LNG on a Free-on-Board basis. It was the first HOA signed for the Alaska LNG Project, outlining the terms for the sale of LNG to POSCO. Additionally, POSCO will make a pre-FID capital investment to support the project.

POSCO Group’s commitment to Alaska LNG reflects strong support across Asia and the Pacific for a sustainable and competitive LNG source. Glenfarne provides industry support and engagement, and as the majority owner of the project, it has secured preliminary commercial commitments for 11 MTPA of LNG from buyers across Japan, Korea, Taiwan and Thailand, including Tokyo Gas, JERA, CPC, PTT and now POSCO.

Glenfarne is developing Alaska LNG in two independent phases. The first phase consists of an in-state pipeline to deliver natural gas for Alaska’s domestic energy needs, followed by a second phase to add an LNG terminal capable of exporting 20 MTPA of LNG. Glenfarne has also partnered with Baker Hughes, which is investing in the project and will supply LNG compression technology with power generation equipment.

PKX’s shares have gained 13.7% over the past year compared with the industry’s 26.9% growth.

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PKX’s Zacks Rank & Key Picks

PKX currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Basic Materials space are Kinross Gold Corporation (KGC - Free Report) , Fortuna Mining Corp. (FSM - Free Report) and Harmony Gold Mining Company Limited (HMY - Free Report) .

At present, KGC sports a Zacks Rank #1 (Strong Buy), while FSM and HMY carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for KGC’s current-year earnings is pegged at $1.63 per share, indicating a rise of 139.71%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 17.37%. KGC’s shares have risen 182.5% in the past year.

The Zacks Consensus Estimate for FSM’s current fiscal-year earnings is pinned at 83 cents per share, indicating an 80.4% year-over-year increase.Its shares have surged 97.1% in the past year.

The Zacks Consensus Estimate for HMY’s 2026 earnings is pegged at $2.66 per share, indicating a rise of 112% from year-ago levels. HMY’s shares have gained 122.6% in the past year.

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