Danaos Expands into LNG Shipping with Glenfarne Partnership
Greek shipping company Danaos Corporation is making significant strides beyond its traditional focus on container ships and bulk carriers. The Nasdaq-listed firm has entered into a strategic partnership with Glenfarne Group, a U.S. energy infrastructure company, to invest in the Alaska LNG project. Danaos will contribute $50 million in development capital through Glenfarne Alaska Partners and will serve as the preferred tonnage provider for at least six new LNG carriers. These vessels will be crucial for transporting liquefied natural gas (LNG) from Alaska to global markets once the project reaches its export phase.
Under the terms of the agreement, Danaos will be responsible for constructing and operating the LNG carriers. This partnership marks a pivotal moment for Danaos as it diversifies its portfolio and ventures into the LNG shipping sector, leveraging its extensive shipping expertise.
Details of the Alaska LNG Project
The Alaska LNG project, spearheaded by Glenfarne, is being developed in two distinct phases. The first phase involves constructing a 765-mile pipeline from Alaska’s North Slope to meet the state’s domestic gas needs. The second phase will introduce liquefaction and export infrastructure capable of handling up to 20 million tonnes of LNG annually. Since taking over as the lead developer in March 2022, Glenfarne has made significant progress, securing preliminary offtake commitments for approximately 11 million tonnes per annum from buyers in Japan, South Korea, Taiwan, and Thailand.
Glenfarne holds a 75% stake in the Alaska LNG project, while the Alaska Gasline Development Corporation owns the remaining 25%. The project also includes partnerships with notable companies such as Baker Hughes and POSCO International, further solidifying its potential for success in the competitive LNG market.
Danaos’ Fleet Expansion and Future Prospects
This partnership with Glenfarne represents a strategic move for Danaos as it seeks to broaden its business horizons. The company is best known for its extensive fleet of containerships, currently controlling 75 vessels, with over 20 newbuildings on order. Additionally, Danaos is expanding its presence in the dry bulk sector, recently confirming the acquisition of a capesize bulker scheduled for delivery in late Q1 2026, which will increase its capesize fleet to 11 ships.
Chief Executive John Coustas emphasized that the Alaska LNG project not only opens a new supply source for the North Pacific but also allows Danaos to apply its shipping expertise in the LNG transportation sector. As the energy landscape evolves, Danaos is positioning itself to capitalize on emerging opportunities in LNG shipping, marking a new chapter in its growth strategy.
