TotalEnergies Secures 20-Year Agreement for LNG Delivery from Alaska

TotalEnergies Secures Long-Term LNG Supply from Alaska Project

TotalEnergies has entered into a preliminary agreement to acquire 2 million tons of liquefied natural gas (LNG) annually for two decades from the planned Alaska LNG project. This move strengthens the company’s status as the leading exporter of U.S. LNG and expands its reach in Asian energy markets.

On Wednesday, the company announced it had signed a letter of intent with Glenfarne, the main developer of the Alaska LNG initiative. The deal, which is subject to a final investment decision, would secure 2 million metric tons per year of LNG for TotalEnergies over the long term.

Strategic Advantages of the Alaska LNG Project

The Alaska LNG facility, situated on the U.S. Pacific coast, is designed for a 20 million ton per year export capacity and stands as the only federally approved LNG export terminal in the region. Its Pacific location offers direct shipping lanes to Asia—the world’s largest LNG market—potentially reducing transit times compared to shipments from the U.S. Gulf Coast that must pass through the Panama Canal.

Expanding Presence in Asian Markets

This agreement fits into TotalEnergies’ broader strategy to solidify its leadership in U.S. LNG procurement and marketing, while diversifying its sources across different regions. In 2025, the French energy giant was the top U.S. LNG exporter, shipping 19 million tons—about 18% of the country’s total output—primarily to Europe as part of efforts to replace Russian pipeline gas.

The Alaska partnership would further shift the company’s portfolio toward Asia, where LNG demand is rising due to transitions from coal to gas, industrial growth, and a focus on energy security. Direct Pacific access could improve pricing and logistical options, especially for buyers in Northeast Asia.

Political and Economic Significance

The Alaska LNG project is not only an energy venture but also a strategic asset, having received federal approval and aiming to bolster U.S. energy connections with Asian partners. Supporters highlight its potential to ease shipping congestion and enhance the resilience of transpacific gas trade routes.

TotalEnergies’ Expansive North American LNG Operations

TotalEnergies’ North American LNG activities include ownership stakes and long-term supply agreements in major export terminals such as Cameron LNG and Rio Grande LNG in the U.S., Energia Costa Azul in Mexico, and Ksi Lisims LNG in Canada. The company also sources LNG from Sabine Pass, Freeport LNG, and Corpus Christi, and maintains upstream gas production assets in Texas, Oklahoma, and the Gulf of Mexico.

Global LNG Leadership

On a global scale, TotalEnergies ranks as the third-largest LNG supplier, with a projected portfolio of 44 million tons per year in 2025. Its integrated business covers the entire LNG value chain, from upstream production and liquefaction to shipping, regasification—especially in Europe, where it controls over 20 million tons per year of capacity—trading, and LNG bunkering.

Looking Ahead: LNG as a Transition Fuel

TotalEnergies aims to increase the share of natural gas to nearly half of its sales by 2030, positioning gas as a key transitional energy source to reduce carbon emissions. The company is also committed to minimizing methane emissions throughout its operations.

Although the Alaska LNG supply agreement is still pending a final investment decision, this preliminary deal highlights growing commercial interest in a project that has been under discussion for years. If approved, it would significantly boost U.S. LNG export capacity on the Pacific coast and reinforce TotalEnergies’ central role in the global LNG sector.

By Charles Kennedy for Oilprice.com