Container vessel specialist Danaos dives into LNG with Alaska project investment

Shortly after signing a deal that further enlarges its already significant newbuilding programme, the prominent Greek owner disclosed it will make a US$50M development capital equity investment in Glenfarne Alaska Partners.

Under the agreement, Danaos will also serve as the preferred tonnage provider to build and operate at least six LNG carriers that will deliver LNG to global customers for Glenfarne Alaska LNG, the majority owner and developer of the Alaska LNG project.

“As Alaska LNG opens up a major new source of North Pacific energy, Danaos is pleased to offer our shipping expertise to reliably serve customers across the region and around the world with safe, competitive LNG delivery,” said Danaos chief executive Dr John Coustas.

Glenfarne chief executive and founder Brendan Duval described Danaos as a “valued addition” to the project’s roster of strategic partners, citing the company’s reputation for high-quality ship ownership and operations.

“One of Alaska LNG’s major competitive advantages is our short shipping distance to Asia, featuring canal-free routes that avoid contested waters. The addition of reliable shipping solutions meaningfully advances the development of Alaska LNG,” Mr Duval added.

Project overview

The Alaska LNG project is being developed in two financially independent phases.

Phase one involves constructing a 765-mile, 42-inch pipeline to transport natural gas from Alaska’s North Slope to meet domestic energy needs.

Phase two adds an LNG liquefaction terminal and associated infrastructure capable of exporting 20M tonnes per annum (mta) of LNG.

Glenfarne, which became the lead developer of Alaska LNG in March 2025, has secured preliminary commercial commitments from leading LNG buyers in Japan, South Korea, Taiwan, and Thailand totalling 11 mta. Its strategic partnerships also include Baker Hughes and POSCO International.

Glenfarne owns 75% of Alaska LNG, while the Alaska Gasline Development Corp holds the remaining 25%.

Danaos’ broader diversification strategy

Dr Coustas noted that the transaction allows Danaos to leverage its global seaborne transport expertise and expand its footprint in the LNG and broader energy segments.

The US-listed company is a major container vessel operator, with an active fleet of 75 ships totalling 477,491 TEU and 25 additional vessels under construction representing 163,950 TEU. Danaos has also diversified into the dry bulk sector, assembling a fleet of 11 Capesize bulk carriers with a combined capacity of almost 2M dwt.

Capitalising on strong market conditions in recent years, Danaos has secured long-term employment for much of its fleet, significantly strengthening its balance sheet.

As of November, the company reported US$4.1Bn in contracted cash operating revenues, including newbuildings, with its container fleet carrying an average remaining charter duration of 4.3 years, weighted by aggregate contracted hire.