TotalEnergies has signed an agreement to lift 2 million tonnes per annum (mtpa) of LNG from the Alaska LNG project for 20 years, anchoring the proposed export venture with one of the industry's most established LNG portfolios.

The company disclosed the deal on its website on 10 June 2025. The offtake covers roughly one-seventh of the 20-mtpa liquefaction capacity that backers of the Alaska LNG project have laid out for a gas export complex at Nikiski, on the Kenai Peninsula in southcentral Alaska.

The agreement gives the project a second major-international offtaker. It follows a separate heads of agreement that the Alaska Gasline Development Corp. (AGDC) reached with Glenfarne Group's Texas-based subsidiary earlier in the project's marketing campaign, as sponsors worked to prove commercial demand sufficient to support a final investment decision.

Alaska LNG, backed by the state-owned AGDC, would move about 3.9 bcfd of gas from Alaska North Slope production through an approximately 807-mile pipeline to the Nikiski terminal, where it would be liquefied for export to Asia-Pacific buyers. The project would monetize North Slope gas that producers including ConocoPhillips, ExxonMobil and Hilcorp have long reinjected or used locally, effectively stranding an estimated 35 tcf of proven and probable gas resource on the slope and in surrounding basins.

The economics remain sensitive to liquefaction and shipping costs, however, with breakeven costs at roughly $9-10/MMBtu landed in Asia, according to recent industry analyses — a figure that could limit competitiveness against US Gulf Coast cargoes even after accounting for the shorter shipping distance to Asian markets.

The US Department of Energy issued a conditional export authorization for the project in the previous administration, allowing shipments to countries without a free-trade agreement with the United States, but a final permit and a binding FID remain outstanding.

The watch item is FID timing. AGDC has said it is targeting a final sanction decision within the next two years, with first LNG in the early 2030s, and additional offtake agreements of the kind TotalEnergies has now signed would be needed to reach that threshold.